An A/P reserve invoice is used in circumstances where:

1. You are invoiced by your supplier prior to receiving the goods
2. You need do want to recognize goods in transit

• You can post an A/P reserve invoice either from a preceding  document e.g.  Purchase order/Purchase quotation or post it as an independent document. The journal entry for the A/P reserve invoice is: Dr. Goods in transit a/c        Cr. Supplier a/c

• After posting the A/P reserve invoice, you can post the payment  for the invoice. The journal entry for the incoming payment is:
  Dr. Supplier a/c      Cr. Bank a/c
• Once you finally receive the goods from the supplier, you can post the Goods Receipt note document from the A/P reserve invoice. The journal entry for the delivery document is:
  Dr. Inventory a/c    Cr. Stock in Transit a/c

I am Caroline Ininga Majute,  a SAP Business One Consultant based in Nairobi, Kenya. For more inquires about sap business one, contact me at: [email protected]