Hmmm... invoice are _definitely_ "economic events", or artifacts that have a direct financial impact on a company and therefore when finalized cause GL entries to be posted. That's the normal way of doing things. An order is received and there is generally no GL entry at that point. There are GL entries needed during fulfillment (inventory issuance), invoicing, receiving payments, etc.
Maybe this isn't what you meant though. I agree that Si's use of a "Uninvoiced Fixed Asset Receipt" account seems a little funny. When a Fixed Asset is received you would get an invoice along with it from the vendor so it would be an unpaid invoice, or payables entry.
-David On Dec 1, 2006, at 5:21 PM, Chris Howe wrote:
I know you want to want to link all of these into automated actionable steps that make sense to your business processes but you must remember: General Ledger entries are ONLY for economic events. Receipt of an invoice is NOT an economic event. If you receive a fixed asset you: Debit: Fixed Asset Credit: Accounts Payable If you want to create a relationship between the fixed asset and an invoice, great. If you want to create a relationship between the invoice and a vendor's account, great. If you want to create a relationship between a general ledger entry and an invoice or a fixed asset, great. But under no circumstance should you record a non economic event in the general ledger. --- Si Chen <[EMAIL PROTECTED]> wrote:David, I think what should happen is this: When any fixed asset is created, if we know the ownerPartyId, then we can create: Debit Fixed Asset (or a specific FixedAsset GL account) Credit Uninvoiced Fixed Asset Receipt Then, when you have a purchase invoice with a fixed asset item created, you can do this: Debit Uninvoiced Fixed Asset Receipt Credit a Payable of some kind--Accounts Payable? I'm not sure - often fixed assets are bought with loans. Then we'd have to think about doing the depreciation calculations, that's what I think could be complicated. Best Regards, Si [EMAIL PROTECTED]
