In this case a submitted invoice is created and not posted to the general ledger until the goods have been received into inventory.
After the submitted invoices have been created, a process is run on a daily basis (generally after inventory receiving). This process scans the submitted invoices and asn records associated with them (asn status indicates received but not matched to invoice).. If the process is able to match the amount in the closed asn records and the inventory activity records created during receiving, to the submitted invoice amount, the following takes place.
The inventory activity records are updated with the tran number from the submitted invoice.
The asn record status is updated to indicate the transaction is complete.
The accounts payable invoice status is changed from S (submitted) to A (active or approved for pmt).
A journal entry is made. The journal entry accounts and amounts are
Debit - Inventory Liability (total amount of inventory activity records being processed or matched to invoice))
Debit - Freight – total from asn header record.
Accounts payable – credit for total amount of invoice.