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Voucher posting account

I’ve spotted what appears to be a bad account configuration but am having trouble determing the fix.

A PO is created for purchase of parts. These parts are used to build our end product. The parts are inventory items that are not sold and have a class code of Common Components. The PO is released, received and a voucher created to pay the invoice. After the voucher is posted the Accounting->Accounts Payable->Reports->Voucher Register shows the voucher listed twice. The line with the Debit amount shows the account as Purchase Price Variance but it should be Materials Cost according to our accountant. The other line in the report for this voucher showing the Credit amount has the account as A/P Trade which I think is correct.

Where in the configuration of xTuple (v4.11.3) is the setting that defines the Debit account used by a voucher?

Configuration elements I have found include:

  1. Payable Assignments has one entry with Vendor Type: All, A/P Account is assigned to “A/P Trade” account number, Prepaid Account to PREPAID account number and Discount Account to Returns & Allowances account number.

  2. We have two Cost Categories:

FG: Finished Goods
Materials: Materials - Main Stock

The Materials cost category does show the Purchase Price Variance account being assigned to our Purchase Price Variance account number but I don’t see how that account number ends up showing in the Voucher Register as the Debit account.

Tips or suggestions are appreciated. I’ve read the Reference Manual section for account setup but have no background in accounting so could be missing something obvious.

It could be a simple case of not defining a suitable standard cost for the item. When you post a Voucher (or depending on configuration, when you receipt an item) the system compares the purchase price to the item standard cost and the difference is posted to Purchase Price variance. If you have no item cost defined, it will post completely to PPV.

The intention of PPV account is to highlight differences between your expected and actual costs and to indicate whether your item costs need to be adjusted and rolled up into a new cost of manufacturing.

Thanks Anderson. It appears we have no standard costs for items.

Is there an easy way to promote all the Actual Cost values to Standard Cost for all items that have Actual Costs?

Or should we make setting the Standard Cost on an item part of our procedure for creating a PO line item moving forward?

BTW, I have found and set the option in System->Setup->Configure->Purchase to “Prevent Purchase Order Items when no Std. Cost Exists”. I’m sure our xTuple users will just love that one. :slight_smile:

Thanks for the help.


Bear in mind Average costed items will have no PPV, new receipts will update the average cost of the items.

Yes - if you look in Products - > Costing you will see options to roll up actual costs, and post actual costs (to standard).

The Reference Guide has a lot more detail on how to use these screens.

Yes, if the vouched amount is the same as the received amount. Average cost items will generate PPV if the vouched amount is different than the received amount.