When the Update Costs in the Warehouse processing is
activated, this utility can be used to post the product costs and
product quantities to the Fixed Asset Tag in the inventory
sub-ledger when the inventory is received into the warehouse,
rather than waiting to post the actual costs later when the A/P
Invoice is received and posted to the G/L.
This would be desirable if your suppliers' invoices are usually
very slow, and the costs need to be updated immediately in the
sub-ledger.
Note: The danger with this approach is that the costs entered and posted at the time of inventory receiving may not match the costs entered and posted at the time the A/P Invoice is entered.
The feature to Update Average Cost In The Warehouse can
be activated in the Company Inventory
Parameters.
This posting program will then become accessible.
Updating the Average Cost in the Warehouse:
This alternative posting method facilitates updating the Average
Cost in the Inventory sub-ledger, from the warehouse receiving. The
costs used would be the costs on the Purchase Order. This means
that the Purchase Order costs must be EXACTLY correct and that the
AP invoices issued from that vendor must EXACTLY equal the Purchase
Order.
If costs are not correct on the P.O., this alternative cannot ensure that the inventory costs and the General Ledger will be equal. If the costs are different, manual adjustments will be required.
(The standard procedure is to update the cost at the time the AP invoice is received and posted, with the actual inventory amounts to ensure that the costs in the inventory and the General Ledger are exactly in sync.)
Process for Updating Average Cost in Warehouse
Rental Inventory
Make sure the order information in the Re-Order Information Window
is correctly setup.
In the Fixed Asset Tag window, add a blank Fixed Asset Tag, i.e.
quantity = 0, and cost = 0, but fill in the Date Acquired and the
Depreciation Class. Do this for every new purchase, so that the
purchases will be separated by date acquired.
The Warranty Expiry defaults from the date received plus the number
of warranty days as setup for this product group in Groups.
Purchase Orders
Make sure the costs and any LCF calculation are correct.
Warehouse Receiving
This updates the quantity on hand (not the Fixed Asset Tag
qty).
The LCF can be confirmed.
These transactions are included in Post Warehouse Receiving Cost
Adjustments postings, only if Prompt for Cost in the
Warehouse is set in the Company Inventory
Parameters and a cost was entered. If this flag is not set, it
is assumed that the cost is not changed.
Post Warehouse Receiving Cost Adjustments
This updates the average cost on the Inventory sub-ledger, using
the costs on the Purchase Orders or
Warehouse Receiving and the LCF.
The costs and quantity are updated on the Fixed Asset Tags and the
Warranty Expiry date defaults from the date received plus the
number of warranty days as setup for this product group in Groups.
An audit report prints, showing how the software has calculated
the new average cost.
It uses the same calculation for Average Weighted Cost as used by
the standard version of A/P Invoices.
A/P Invoices By Purchase Order
This program will recognize that the costs were already updated,
when the invoices were entered.
Use the Inventory version so that the warehouse receipts are
matched to an A/P invoice and the General Ledger is properly
updated using the accounts on the Product Classes.
If Support Application Parameters has
been set to Post Duty/Brokerage, Freight and Exchange, these
values are posted to the G/L when the A/P invoice is entered.
The Duty/Brokerage, Freight and Exchange cannot be changed during
the invoicing, as it must agree with the costs previously saved in
the inventory sub-ledger.
Post A/P Invoices
Refer to Post A/P Invoices for a detailed
posting explanation.
Both the INVENTORY/COGS ADJUSTMENT RE: OVER-SHIPPED ITEMS and
the INVENTORY ADJUSTMENTS FOR INTERNAL TRANSFER ITEMS will print if
applicable, when posting is done for A/P invoices, if there are any
inventory cost amounts that differ from the inventory cost posted
in the Warehouse.
Refer to Post A/P Invoices for further
information on these two cost adjustment reports.
Posting Control
This program cannot be run at the same time invoices are being
posted in Post A/P Invoices or while
inventory receiving records are being entered in Warehouse Receiving
The Post Warehouse Receiving Cost Adjustments program is
designed to be run by one operator at a time.
Locking will occur if another operator attempts to run the program
at the same time, or if the first operator did not exit the posting
program correctly.
A Posting Control Information warning
will appear on the screen preventing the second operator from
proceeding, and only operators with Security
Role permission to reset the Inventory - Warehouse Cost
Adjustments flag will have access to the RESET
button that unlocks the program.
Whenever the posting control flag for Warehouse Cost Adjustments is
reset, an audit record is written to the Delete Log for the Function INWR91.
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