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Has anyone had to uncouple Accounts Payable from the purchasing/receiving/inventory process? We are running just about everything except sales and order fulfillment out of System21. Our corporate parent is consolidating all financials (general ledger, accounts payable, payroll). In the accounts payable change, corporate wants us to send purchase orders and receipts to them. The supplier will send the invoices to the corporate office where they will be matched. We will then receive the matched receipts back to update the purchasing records. The problem appears to be with sending the purchase orders for direct materials. We are using standard cost on most direct materials, but a few are FIFO costed. Direct material items are loaded in the item master with the purchases accounts = the stock accruals account. When the 3-way match occurs, the stock accruals accounts is debited and the matched account credited. If there is a variance, then the appropriate variance account is debited or credited. When the check is cut, the matched account is debited and the cash account credited. AFI run on inventory is then the vehicle to hit the correct cost center for the item. I believe this is the standard in System 21, and it allows us to account fo the same direct materials being used in multiple manufacturing cost center. The corporate requirement is for the purchase order to specify the account associated with the cost center (the same one that we build all kinds of nifty rules to determine where AFI will put it), the theory being that the purchaser knows where the material will be used.
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