*New fields added for AV2015* ➤ scroll down to Step #3

When working with large companies, it is often necessary to keep several shipping or mailing addresses on file for each company. The Ship/Bill To area allows you to keep as many additional addresses as needed for your Clients and Vendors. You can choose from these additional addresses when creating a Sales Order or Purchase Order.

Note: Also see the article on how to Import Alternate Shipping and Billing Addresses.

Accrued Inventory Payable (also known as Inventory Holding) is a holding account that supports Purchase Order receipts that have not yet been invoiced by the Vendor. The process allows you to reconcile your PO receipts against the Vendor's invoice. As a Liability it carries a nominal Credit balance.

When you receive a shipment of Inventory (i.e. PO Line Items), your sales team wants access to those items so they can be sold. The Vendor's invoice is typically received sometime after receipt of the Inventory shipment so the Accounts Payable department has not yet recorded an actual Liability for the Purchase. In order to balance the value of Inventory that has been received but not yet paid for, AV makes an entry to a holding account called Accrued Inventory Payable. When a Voucher is set up for the Vendor invoice the Accrued Inventory Payable account relieved by a debit and Accounts Payable is credited.

The accounting look like this:

1. Purchase Order Receipt (aka Purchase Event):
   • Debit to Inventory Asset at the PO Cost
   • Credit to Accrued Inventory Payable at the PO Cost
2. AP Voucher (aka Vendor Invoice):
   • Debit to Accrued Inventory Payable at the PO Cost (netting this account to $0 for the PO receipt).
   • Credit to Accounts Payable for the Voucher amount (or a credit to the GL Account associated with any selected alternate Payment Type)
   • Optional: Additional Debit to Inventory Asset or Cost of Sales for any change in the Vendor's price or to record Landed Costs

So you can see that the Accrued Inventory Payable account simply holds the value of the received PO items until the Vendor's invoice is entered.

The View AR Aging area records all charges on account made by your Clients. Accounts Receivable documents can be created by Invoices, Credit Memos or Adjustments. The AR Aging record will also display payments made against the AR document.