Vendor prepayment journal : accounting schema

This article describes the accounting schema for the vendor prepayment journal flow in Dynamics AX 2012.

If you want a description of the functionality, go to this article : vendor prepayment journal.

Data for the example:

  • prepayment without sales taxes : 150
  • Prepayment sales taxes : 24,58
  • Invoice – Charge account : 550
  • Invoice – Sales taxes : 107,8
  • Total invoice to pay : 657,8

Remark: the first step is the prepayment journal because there is no accounting for the purchase order. In this example, there is no inventory accounting for the product receipt.

Step 1: prepayment journal

Access: AP > Journals > Payments > Payment journal > Lines > Inquiries > Voucher

  • Payment journal : prepayment amount = 150 & Sales tax = 24,58
  • Accounting :
    • Debit: Prepayment vendor account from the summary account setup in the Vendor posting profile for prepayment (409001).
    • Debit: Sales tax recevaible acount from  ledger posting groups link to the sales tax code (445660).
    • Credit: Sales tax Prepayment account from Vendor posting profile setup for prepayment (445800).
    • Credit: Bank account selected in the journal (512020).

VendorPrepaymentAP025

  • Vendor posting profile for prepayment

VendorPrepaymentAP023

Step 2: Vendor invoice

Access: AP > Commons > Vendors > All vendors > Transactions > Voucher

  • Invoice: Charge account = 550, Sales taxes = 107,8 and vendor account = 657,8
  • Accounting:
    • Debit: charge account from” Purchase expenditure for expense” account from the item posting profile (623000).
    • Debit: Sales tax recevaible acount from  ledger posting groups link to the sales tax code (445660).
    • Credit: Vendor account, Summuray account from vendor general posting profile (401000).

VendorPrepaymentAP027

  • Purchase expenditure for expense: Inventory managment > Setup > Posting > Posting

VendorPrepaymentAP032

Step 3: Settle prepayment with the invoice

Access: GL > Inquiries > Voucher transactions

  • Prepayment and invoice settlement: prepayment amount = 150 & Sales tax = 24,58
  • Accounting:
    • Debit: Sales tax Prepayment account from Vendor posting profile setup for prepayment (445800)
    • Debit: Vendor account (summuray account) from vendor general posting profile (401000)
    • Credit: Sales tax recevaible acount from  ledger posting groups link to the sales tax code (445660)
    • Credit: Prepayment vendor account from Vendor posting profile setup for prepayment (409000)

VendorPrepaymentAP030

Step 4: Payment at due date

Access: AP > Journals > Payments > Payment journal > Lines > Inquiries > Voucher

  • Payment journal : remaining payment = 507,80
  • Accounting:
    • Debit: Vendor account from vendor posting profile (401000).
    • Credit: Bank account selected in the journal (512020).

VendorPrepaymentAP031

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2 thoughts on “Vendor prepayment journal : accounting schema

  1. Pingback: [ ax2012 ] sales tax in account point of view | dsin

  2. We get a 2% discount on a particular vendor’s invoice and our system was set up to automatically take that discount upon entering of invoices. However, the full invoice amount posts to the prepayment account (which is fine), but when we receive the inventory and close the transaction, only the discounted amount posts to the prepayment account leaving a balance of the discount. We then have to do a manual Journal entry to reclass the remaining balance to the discounts GL. How can this be corrected so that the total invoice amount is cleared out of the prepayment account and the discount posted to the proper GL?

    Reply

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