How should be the purchase result integration for a purchase order linked to a project??

normal purchased (tdinv850) I have

Debit: Invoice to be received
Credit: Purchase Result

How should it be on tipcs850?? baan help says..

Debit: WIP
Credit: Purchase result

is it OK?? what happens with Invoice to be received account??

Regards

JP

Go ahead as per Baan help. It's ok .

I don't think it is OK, considered with the first set of Entries. Purchase result is passed when there is a difference between the standard price of the item and the purchase order price for the same. When you initially take receipt of the material, the first entry goes at standard cost, meaning you are crediting ITBR account at standard cost.

When you register the bill in Finance, you will be registering it at invoice rate or PO rate, but obviously not at the standard price. Assuming for a moment that it is at PO rate and there is no book variance, the system matches it perfectly, debiting ITBR and crediting the Received invoices a/c with the PO PRICE.

With the first entry above, ITBR got a credit at standard price. With the second entry above, ITBR got a debit at PO price. Thus, the ITBR will never tally. Hence your entry should be to debit ITBR (ITBR) & credit Purchase result. This means your WIP is carried at standard cost, which is the case even in case of non-project WIP.

Hope this clarifies.
Happy New Year
baanmanindia

When you initially take receipt of the material, the first entry goes at standard cost, meaning you are crediting ITBR account at standard cost.

This is wrong . When u take receipt , entry is passed to actual purchase price for project related purchases and entry purchase/material cost is passed.