Transactions Triggered by Purchase Process Documents
Impact on the inventory, the transaction journal and other registers
The purchase documents adjust the inventory quantities, update the transaction journal and affect the related registers as follows:
- A purchase quotation does not have an inventory or accounting impact.
- A purchase order generates an inventory commitment and affects the inventory quantity available affecting the inventory register. Items are assigned the state “Expected” and the status “Without invoice”.
- A goods receipt updates the inventory register by increasing the inventory quantity to commit and the in-stock quantity. It also creates an accounting transaction from the inventory account (debiting it) to the transit account (crediting it). The credit entry to the transit account is also reflected in the inventory register assigning items for receipt the state Received without invoice.
- If you create a purchase invoice as a stand-alone document without reference to the receipt, you can use it as a receipt document. If your purchase invoice functions as a receipt document, it increases the quantity of goods in stock. Otherwise, it just makes reservation on indicated quantity of items. A purchase invoice created from the goods receipt opens (debits the transit account) the crediting transaction to the transit account. It also creates other accounting transactions recording revenues, expenses, taxes as well as changes vendor accounts balances. The changes are reflected in the transaction journal, the VAT register and the vendors register.
- A debit note increases the stock quantity and creates accounting transactions. It reverses or corrects the original transactions made by the purchase invoice.