PO Charge a/c for expense stockable item

Question

For an expense stockable item, the PO Charge account gets defaulted from the Expense a/c defined at the Inventory Org level, and this cannot be changed. However, I would like to change the cost center manually while creating PO, in order to track the expenses for a particluar cost center.How can I achieve this?
thanx

Answer 1

Hi,
I don't think what you are trying to do is possible. Basically, for "inventory expense" items you cannot change the value defaulted for the Charge Account in Purchase Order, IF the destination is Inventory. This destination can be changed into Expense PO, not only in Requisition, but if you change the destination, then it will become a normal Expense Item, you cannot track its quantity, so there's no point in doing that.
There's a workaround if the possible charge account combinations is not many. Here is the behavior of Inventory Expense Account:
- PO (or PR) charge account will be defaulted from the subinventory (asset or expense subinventory does not matter)
- If system cannot find any expense account in the subinventory (or if there are no subinventory defined in PO Distribution), the charge account will be defaulted from the organization item (not the master item)
- When you create these item, and assign them to a child org, it became an organization item, which expense account is defaulted from the org parameter window (so this account will never be empty and system will take it as default if no expense account in subinventory)
- The PO charge account and the ones that being charged in journal creation can be different when received into different subinventory with different expense account.
So, the workaround could be:
- Define several subinventories with different expense account
- Specify the subinventory where items should be received in Purchase Order Distribution
you'll have the journal entries you desired. --> not effective if you have many possibilities for charge account
Thanks