Clear Accrued Inventory Payable Balance

Use the following steps to clear Accrued Inventory Balances.

Note: This is NOT the normal procedure for clearing AIP balances, this note assumes that there has been a data entry error resulting in duplicate Purchase Orders which will create duplicate AIP records.

1. Find Vendors with Accrued Inventory Payable balances

  1. Go to General Ledger ➤ Chart of Accounts.
  2. Use the Filter By drop-down menu to find Special Accounts.
  3. Double-click to open the account(s) marked the Setup Type of L – Inventory Holding.
  4. Click on the History button.
  5. On the left side of the history screen, check the Drill Down to Sub Accounts box.
  6. Double-Click into the latest fiscal period.
  7. You will now have a list of Vendors with open Accrued Payable balances.
  8. Leave this screen open or take a screen shot of the contents for reference.

2. Clear Accrued Payable Balances

  1. For each Vendor in the list created above, create a new AP Voucher record.
  2. Add the Vendor’s name to the AP voucher and then click on the PO Line Items tab of the Voucher.
  3. Enter a comment such as “AIP Adj.” for the Vendor’s Invoice #.
  4. Highlight ALL line items on the Inventory tab and click the Pay Mark button.
  5. Click on the General Ledger tab.
  6. Note the Amount Remaining to Distribute at the bottom of the screen. This is the total Accrued Inventory Payable amount to be adjusted for this Vendor.
  7. Add a line on the GL tab for the GL account that you want to balance this transaction with. (You can add more than one account if applicable.)
  • The total of these lines should equal the Amount Remaining to Distribute. This will typically be a negative number.
  • Ensure that the Amount Remaining to Distribute is now zero, the Voucher Amount is zero, and the Ready to Post box is checked.
  • Save the Voucher Record and repeat the process for the next Vendor.
  • 3. Post Vouchers

    When you’ve finished entering the Vouchers, don't forget to Post!

    This completes the process.