The switch enables the Supplier Delivery Note functionality which automatically creates an accrual for the outstanding Supplier Invoice.
Supplier Delivery Notes are also known or referred to as the Goods Received Note / Voucher or GRN/GRVs.
Ideally this module should be used with the purchase orders module, however it is not necessary. Supplier delivery notes are created when receiving stock from a supplier. Creating supplier delivery notes will add the ordered stock to the actual stock level but will not adjust your supplier’s account.
If you are generating a delivery note from a purchase order then the system will reduce the on order quantities of the stock at the same time. If a purchase order is not used, then the delivery note will only update the stock levels. In both instances a supplier invoice will need to be processed once it arrives.