Inventory Control - Inventory Transaction EntryFunctionUse this task to enter manual inventory transactions, including adjustments, receipts, issues, and commitments. This task is the first step in manual inventory transaction processing, which also includes the producing the Inventory Transaction Register and the Inventory Transaction Update process.
=> To access this task... Select Inventory Transaction Entry from the Inventory Control main menu.
Inventory Transaction Entry About the FieldsThe Inventory Transaction Entry screen is divided into two sections. In the upper section (header) fields, enter the reference number, date, comments, and the transaction code. In the lower section (detail) fields, enter inventory items and processing details. Depending on the type of transaction selected, the fields that appear in this section can change.
In the Reference Number field...
A purchase order, shipping document, or other authorization number (supplied by the individual authorizing an adjustment) may also be used as a reference number.
When an existing reference number that has not been updated with the Inventory Transaction Register is entered, the transaction code, date, and comments associated with the number are displayed.
In the Transaction Date field...
During the update, this date is compared to the inventory period (Refer to the Current Period and Current Year parameters in the System Parameters option of the Application Parameters) to determine what period should be updated.
In the Transaction Code field...
The transaction code identifies how the transaction is recorded within the inventory system, and to which general ledger account(s) the transaction is posted during the update process. General ledger account posting is optional depending on how a transaction code is defined. Every transaction code is defined to be one of the following types, and has a different effect on how the inventory is updated.
Refer to the Transaction Codes maintenance task for a complete explanation of transaction code types and how they update the inventory and general ledger.
NOTE: When manually adjusting commitments, these transactions are not referenced by the Rebuild Committed Quantities task.
In the Transaction Comments field...
When header entries to the fields are complete, select the detail section in the Item Warehouse Values section to activate the cell.
Entering an item which has its Inventoried? parameter checked in the Inventory Master task, causes additional fields to appear in the detail section of the screen – Location, On Hand, Committed, and Available. Once the detail line is accepted, the additional fields disappear from the screen.
In the Location field... Display only. Shows the warehouse location of the inventory item.
In the On Hand field... Display only. Shows the current inventory on hand.
In the Committed field... Display only. Shows the committed inventory quantity.
In the Available field... Display only. Shows the available inventory of the item (= on hand – committed).
Details Section
In the Whse ID field...
In the Item ID field...
The item description, product type, cost (from the Warehouse file), quantity on hand, quantity committed, quantity available, and location are displayed.
In the GL Account field... This field is accessible only if the selected transaction code posts to the General Ledger.
The GL account description is displayed.
In the User ID field...
In the Trans Qty field...
In the Lot/Serial No Loc field... This field is accessible only when an item has been selected that is set to Lotted or Serialized Item? parameter is checked in the Inventory Items task.
In the Lot/Serial No Cmt field... This field is accessible only when an item has been selected that is set to Lotted or Serialized Item? parameter is checked in the Inventory Items task.
In the Unit Cost field... This field is accessible only when entering a receipt type transaction.
In the Total Cost field... Display only. The product of Trans Qty times Unit Cost.
When finished making entries to the fields...
Special Note: Adjusting the cost of an inventory item without adjusting the quantity.There may be times when adjustments to the unit cost of an inventory item without changing the inventory quantities are required while providing an audit trail of the change. This may occur if an item was originally received into inventory at one cost, and it is discovered at a later time (perhaps when the invoice was received) that the true cost is different.
To adjust the unit cost of an item and provide an audit trail of the change, two separate transactions need to be entered using the Inventory Transaction Entry task. The first is a receipt type transaction, where the unit cost is set to update to the inventory. The quantity received can be “1” if using replacement cost as the standard cost method, as that is sufficient to adjust the inventory item unit cost.
If using the average cost method, number of units that were received at the incorrect cost must be determined and the amount of the error. For example: 10 units were received at $95 that should have been received at $100. To correct the average cost, another receipt of 10 units is entered, this time at $105.
The companion transaction is an adjustment type to the same inventory item using the same quantity as the receipt transaction, only negative. The unit cost for this transaction does not matter since it has no effect on the inventory unit cost during the update.
Creating the Inventory Transaction Register provides an audit trail of the adjustment. Then perform the inventory update. The net result is an adjustment to the inventory item unit cost and no change to the inventory quantities.
This method works when not using FIFO or LIFO costing. If using FIFO or LIFO, then cost adjustments need to take into account the effect they will have on the cost tiers. Adjusting costs can still be done though it may require several separate transactions. ______________________________________________________________________________________ Copyright BASIS International Ltd. AddonSoftware® and Barista® Application Framework are registered trademarks. |