We have just shifted from all item PO's regardless if it is a service or not, to proper classification of requisition. Service PO's are now provided to service suppliers and material PO to material suppliers. However in Service PO issued what is ticked is GR-based IV and not S-based IV. The issue now is this, Upon posting of an invoice that is less than the value of the GR, the system creates a credit entry back to WBS. Considering that the amount of the GR has already been expense for that period, the Credit entry now requires us to make an accrual at the end of the period.
GR amount is 1 million
Invoice amount is 100 thousand
Upon posting of the invoice, the entry posting provided is wrong:
DR GRIR for 1 million
CR WBS GL 900 thousand
CR vendor account 100 thousand
Suppose what is ticked on PO is S-based IV, will it provide the above entry in-posting invoice? Or the entry will be different as the posting will now be on the Service Entry level.