Hi All,
Does anyone use 3 way matching invoices with GRNI by statistical accounts rather than a GL account.
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Hello,
Are we talking about inventory or non-inventory purchase?
In case of inventory, receipt is booked as debit M1 and credit M10. M1 (inventory) must be asset account, so GRNI account must be another non-statistical account or you will have not balanced ledgers at period-end (assets not equal to liabilities + result).
In case of non-inventory, M91/M92 receipt entries could be directed to statistical accounts instead of cost vs liability, but you have an option as well to not post such receipts at all.
In general, using statistical accounts for GRNI seems a weird idea to me.
Yes, we do for Italy. In Italy, there are fiscal accounts that are needed for reporting to the government, but the detail that IFS provides is not desirable to be part of the reporting at points since Italy still charges tax in areas by the length of the report. So essentially the Inventory Transactions are transferred to statistical accounts and are not included as part of the total reporting. We have receipts that generate GRNI and inventory increment, but from that point, inventory runs within the statistical accounts up until the point of processing the supplier invoice and payment, then it is back out to fiscal accounts.
M1 is not an asset account, it statistical (all our statistical accounts start with 88), the matching fiscal account if there is one is without the 88 prefix)
M10 is also statistical
M91/92 can stay on the fiscal side the entire time because they don’t cross inventory anyway
IP1 for supplier invoices and PP37 for supplier payments runs back out to the fiscal accounts
You need balancing accounts then on the front and the back of the process wherever you are switching from fiscal to statistical, then from statistical back to fiscal. Those balancing accounts are then used to compare the inputs and outputs of the statistical accounts. We essentially treat everything based on the doors of the building. Purchase orders exist outside the building, so all of that information is fiscal. As soon as goods are in the building, they are in the statistical world. When they exit either in the form of supplier payments or the transition of inventory to cost of goods and leave the building, then everything is fiscal again.
It is a bit hard to explain in a post as it took us months to work out, but it is possible to achieve and while it seems a weird idea to those who don’t have a good reason to do it, it is necessary where the inventory transaction detail is an unnecessary part of the fiscal reporting.
If you can avoid it, then I would agree, don’t do it. If you must do it for financial reporting reasons while still operating within the IFS Inventory Transaction detail, then I can suggest that it is possible. Our Italian operation has operated this way for three years now and was approved by the local tax authorities which ultimately is all that matters in these instances.
Sorry, missed one screenshot of the accounts on the front
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