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Foreign Purchasing

  • 1.  Foreign Purchasing

    Posted Sep 27, 2019 08:04 AM
    Hi All,


    I have a question, is there a way in nav 2018 to post a purchase invoice prior to receiving the goods? The reason for the question is that we have some foreign vendors and generally the lead time for product arrival is at time 120 days however, payment terms are generally 30 to 90 days. Our accounting department always has to play catch up. Maybe there is a way to have this all fit right, which I'm pitching it to the experts.


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    Joseph Woodruffe
    System Analyst
    Excellent Stores
    Chaguanas
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    Conference-BCNAVUG_200x200


  • 2.  RE: Foreign Purchasing

    Posted Sep 27, 2019 09:44 AM
    Joseph

    When posting a Purchase Invoice against inventory items. NAV/BC will receive the goods. In your case, you are doing a "Pre-Payment" as the goods will arrive after the Commercial Invoice is due. Look at the "Pre-payment" functionality within NAV/BC. You can make payments to the Vendor and apply those payments to a good receipt down the road.

    This might help.

    Good Luck!

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    Alfredo Zelaya
    Sr. Systems Analyst
    Megadyne Americas LLC
    Fairfield NJ
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    Conference-BCNAVUG_200x200


  • 3.  RE: Foreign Purchasing

    NAVUG ALL STAR
    Posted Sep 30, 2019 08:18 AM
    @Joseph Woodruffe

    Do you own the inventory once it's shipped? If so, instead of using the prepayment method mentioned by Alfredo, you would want to receive the inventory into an On the Water Location when you receive notification of shipment. Once physically received in your location, you would then use a Transfer Order to transfer the inventory to your actual location.

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    Amanda Mayer
    New View Strategies
    Milwaukee WI
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    Conference-BCNAVUG_200x200


  • 4.  RE: Foreign Purchasing

    SILVER CONTRIBUTOR
    Posted Oct 01, 2019 10:44 AM
    We follow Amanda's process for some items with long transit times.  If we own the inventory at time of shipment, PO's are received and invoiced to our "DOCK" location, then immediately put in the "ONWATER" location on a transfer order to the final warehouse.  If we do not own the inventory at time of shipment, PO's are paid at the appropriate time using the Prepayment function and later posted once the goods are physically received.  

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    Eric Moe
    Global Supply Chain Manager
    Industrial Revolution
    Tukwila WA
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    Conference-BCNAVUG_200x200


  • 5.  RE: Foreign Purchasing

    Posted Oct 01, 2019 10:53 AM
    Yes, you've basically described the implementation I'm looking for.

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    Joseph Woodruffe
    System Analyst
    Excellent Stores
    Chaguanas
    ------------------------------

    Conference-BCNAVUG_200x200


  • 6.  RE: Foreign Purchasing

    Posted Oct 01, 2019 10:51 AM
    @Alfredo Zelaya, @Amanda Mayer

    Thanks, guys for your responses, I've investigated both methods, and what seems to work is a marriage between the 2, We do "own" the products once the supplier ships it and when it was time to pay for the item, checks were drafted and paid then the accounting team will then have to remember to apply the previously drafted check to the supplier account when the products are received. So the method of receiving on the "On the Water Location " has merit so reduce the gap in which the invoicing and payment occur.

    Not all invoices are paid in full meaning that some of our vendors we have agreement terms, so we do multiple part-payments, which is where the prepayment function works, up until it is fully invoiced. The prepayment can work for this.

    Thanks again for your suggestions they were very helpful.


    ​​

    ------------------------------
    Joseph Woodruffe
    System Analyst
    Excellent Stores
    Chaguanas
    ------------------------------

    Conference-BCNAVUG_200x200


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