Delivery Note - Effect on P & L

[Former Member]

Hi All,

When we post Deliveries on the system, we note that it does not affect the P & L. On the other hand, when we post Goods Receipt PO, it does show on the P & L (under Goods Received Not Invoiced (GRNI) Clearing).

This results in our P & L being not correct until we convert the Deliveries into A/R Invoices.

Best regards,

Myran

[Former Member · Accepted solution]

Ausch,

The Delivery Note should Debit COGS and Credit Inventory.

If you have only created a Delivery, with no Invoice, you should see the COGS entry of the Delivery reflected in your P/L. At this point the COGS have been recognized, but Revenue has not.

If you are not seeing anything in the P/L, make sure that the COGS account setup in G/L Determinations (or Whse or Item Group, depending on your configuration) is set for the P/L.

To check this, drill into the G/L Account and open Account Details. There is a category field, it should be set to "Profit & Loss".

As a part of normal Month End processes, reviewing open Deliveries and converting them to Invoices posted in the same month as the Delivery is something we recommend most companies do. There are some exceptions, of course, but typically the A/R Invoice should be posted in the same period as the Delivery it is based on. Therefore, reviewing any Deliveries at Month End that were left open is a valuable process.

Hope this helps,

Brad Windecker

[Former Member · Accepted solution]

>

> Ausch,
> 
> The Delivery Note should Debit COGS and Credit Inventory.
This is correct. The Delivery is creating a Credit to Inventory and a Debit to COGS.
> 
> If you have only created a Delivery, with no Invoice, you should see the COGS entry of the Delivery reflected in your P/L.  At this point the COGS have been recognized, but Revenue has not.
> 
> If you are not seeing anything in the P/L, make sure that the COGS account setup in G/L Determinations (or Whse or Item Group, depending on your configuration) is set for the P/L.
> To check this, drill into the G/L Account and open Account Details.  There is a category field, it should be set to "Profit & Loss".
> 
> As a part of normal Month End processes, reviewing open Deliveries and converting them to Invoices posted in the same month as the Delivery is something we recommend most companies do.  There are some exceptions, of course, but typically the A/R Invoice should be posted in the same period as the Delivery it is based on.  Therefore, reviewing any Deliveries at Month End that were left open is a valuable process.
Usually we do issue the A/R invoice in the same month that we have done the Delivery. However, untill we issue the invoices the P & L for that month is distorted. What is the best way to search for Deliveries not yet converted to Invoices?
> 
> Hope this helps,
> 
> Brad Windecker

[former_member583013 · Accepted solution]

Please look at Sales A/R > Sales Report > Open Items list ...from the drop down select Deliveries.

This will give you all the deliveries not yet invoiced with their totals at the bottom. To filter by a date range use the filter option by Clicking the BLue Funnel Icon on the Tool Bar (Also access from Data > Filter Table...)

Suda

[Former Member]

Myran,

You said: "This results in our P & L being not correct until we convert the Deliveries into A/R Invoices""

Are you pertaining to posting of figures on your (P&L) Cost of Sales and none on the Income, thus yieling to a lower income?

It's a usual business process for transactions that were delivered and not yet issued/prepared an Invoice will result to a lower Income in the P&L (Income-COS-OE=Profit/Loss).

Posting DELIVERIES affect the P&L, in the Cost of Sales section. Posting INVOICES affect the P&L in the Income section.

Some companies, make sure that all DELIVERIES will be INVOICED by the end of the month to show a more acceptable P&L.

Laurence Resubal

[former_member583013]

Myran,

Actually, the Deliveries should affect the P&L. The typical Journal Entry of a Delivery is

COGS Dr

Inventory Cr

Are you using a regular warehouse or a drop-ship warehouse?

Suda