Procurement Line Types

Business Applications Procurement
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1

What line types are supported in procurement documents? How do they affect inventory and financials?

2

Procurement documents support various line types, each impacting inventory and financials differently:

  1. Stock Line Type: Used for purchase items to be received into inventory and tracked.
    a. Inventory Impact: Inventory levels are updated.
    b. Financial Impact: General Ledger entries are recorded upon receiving inventory and received not invoice entries later when the purchase order is invoiced.
  2. Non-Stock Line Type: Use for purchase items not affecting inventory levels.
    a. Inventory Impact: No impact on inventory.
    b. Financial Impact: No inventory-related GL entries. General Ledger expense entries are recorded either when the purchase order is invoiced or both when at receive and invoice based on the Non-Stock Expense Processing setting.
  3. Freight Line Type: Use to charge freight and shipping costs for the items associated with the purchase order.
    a. Inventory Impact: No impact on inventory.
    b. Financial Impact: General Ledger expense entries are recorded when the purchase order is invoiced.
  4. Services Line Type: Use to indicate the service being provided by a supplier.
    a. Inventory Impact: No impact on inventory.
    b. Financial Impact: General Ledger expense entries are recorded when the purchase order is invoiced.
  5. Job Line Type: Use to charge goods and/or services to a specific project, task, and cost component for job costing.
    a. Inventory Impact: No impact on inventory, except when a Stock item is used on the line and the organizational unit tracks job material.
    b. Financial Impact: General Ledger expense entries are recorded when the purchase order is invoiced, except when a Stock item is used on the line and the organizational unit tracks job material.

These line types allow for flexibility in managing different procurement scenarios, ensuring accurate tracking and financial reporting.

See About Procurement topic under Nextworld documentation for more information about Procurement Line Types.

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