A purchase invoice may contain one or more of the following payables: operational expense (non-inventory) items, inventory items, and cost adjustment items. All three types of payables can have any number of items (inventory or non-inventory).
Additionally, taxes and credits can be recorded for all payables on a purchase invoice.
Operational Expense Items: Expenditures, including services and operational expenses (e.g., utility bills).
Inventory Items: Inventory items that require inventory receipts.
Cost Adjustment Items: Supplier price adjustments (e.g., rebates) and/or freight or other charges for inventory items that have already been added to agrē.
Note
In agrē, costing is based on the FIFO (first in, first out) method for each location within your company. When you add an inventory receipt, agrē starts a “Cost History Table” for each inventory item on the receipt, which includes the quantities, dollar values (or estimated costs), and movement of all your inventory items. In addition, GL postings are made. When you add a purchase invoice for the inventory items, agrē automatically updates supplier accounts and adjusts the Cost History Table and GL postings for actual costs. For information on costing, see Costing Overview (Inventory).