Procurement & Purchasing

Posting a PO receipt is the integration point that connects procurement to inventory and the general ledger. On receipt posting, the system performs automatic inventory updates: stock levels are increased through the same ReceiveStock flow used elsewhere in inventory.

For traceability, a stock movement is created for the received goods with a reference back to the originating PO receipt. The application provides click-through navigation from a stock movement to its source receipt, so a stock analyst can trace any increase in on-hand quantity to the exact procurement document that produced it.

At the same time, a balanced journal entry is generated automatically. For both the Receive Stock action and a PO Receipt Post, the entry debits the Inventory Asset account (1400) and credits Accounts Payable (2100) for the amount of quantity multiplied by unit cost. This assumes stock is purchased on account, so the liability to the vendor is recorded as inventory value increases.

These GL accounts must exist in the Chart of Accounts for the integration to work: account 1400 for Inventory Asset and account 2100 for Accounts Payable. Because the journal entry is posted automatically with a reference to the source transaction, the financial records stay aligned with physical receipts without manual journal creation.