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
- Go to General Ledger ➤ Chart of Accounts.
- Use the Filter By drop-down menu to find Special Accounts.
- Double-click to open the account(s) marked the Setup Type of L – Inventory Holding.
- Click on the History button.
- On the left side of the history screen, check the Drill Down to Sub Accounts box.
- Double-Click into the latest fiscal period.
- You will now have a list of Vendors with open Accrued Payable balances.
- Leave this screen open or take a screen shot of the contents for reference.
2. Clear Accrued Payable Balances
- For each Vendor in the list created above, create a new AP Voucher record.
- Add the Vendor’s name to the AP voucher and then click on the PO Line Items tab of the Voucher.
- Enter a comment such as “AIP Adj.” for the Vendor’s Invoice #.
- Highlight ALL line items on the Inventory tab and click the Pay Mark button.
- Click on the General Ledger tab.
- 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.
- 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.
3. Post Vouchers
When you’ve finished entering the Vouchers, don't forget to Post!
This completes the process.