Closing purchase order affects prior year

[Bud]

If a purchase order is closed when the quantity received hasn't been fully
invoiced, GP will make a G/L adjustment to revalue the inventory based on the
actual amount paid for the goods (which makes sense - your inventory should
be valued at the price paid, not at what it was ordered at).

However, we ran into a situation today that has me wondering....

We closed some POs that were open from 2008 (don't ask!), and since they
hadn't been fully invoiced, GP generated an entry to the 2008 G/L. Since we
post through the ledger (and since we keep one period open for FRx purposes),
the transactions were posted to 2008, throwing off our 2009 inventory
beginning balance.

This, needless to say, is not a good thing. Our audited G/L balances for
2008 have changed, and, needless to say, will drive our auditors crazy.

Is there any way to prevent this from happening?

--
Bud Cool
Microsoft Certified Business Management Solutions Specialist, GP 9.0
Financials
Currently supporting: GP 9.0, SP4

[Victoria [MVP]]

Bud, what version/SP of FRx are you using? The issue that caused you to
have to leave one period open each year has been fixed a long time ago.

--
Victoria Yudin
Dynamics GP MVP
Want to use Crystal Reports with GP?
http://www.flex-solutions.com/gpreports.html
blog: http://www.victoriayudin.com

"Bud" <bc...@hdainc.com.(donotspam)> wrote in message
news:680F7038-0F91-4DC6...@microsoft.com...

[Bud]

We're on GP 9.0 SP4 and FRx 6.7 SP10, so can I report on prior years OK
without having a period open?

I'm curious, though, if I close all the prior years to G/L posting, what
will happen when I close a PO from a prior year? Will the journal entry not
post, or will something else happen to warn me?

--
Bud Cool
Microsoft Certified Business Management Solutions Specialist, GP 9.0
Financials
Currently supporting: GP 9.0, SP4

[Frank Hamelly, MCP-GP, MCT, MVP]

Victoria is correct Bud. You don;t have to have a period open in a
prior year for FRx to report on that year.

As for your GL posting into a previous year for PO closing, if you
have all periods in all series closed to entry, you'll get a warning
that you can't post into a closed period.

You might also want to change your posting settings for Edit PO so
that it posts to and not through the GL.

Frank Hamelly
MCP-GP, MCT, MVP
East Coast Dynamics
www.eastcoast-dynamics.com

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