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Negative Quantity in Purchase Order

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Hi,

We are currently using NAV 2017 and are using a simplified purchase order system using G/L Account vs the inventory system. Any items received at month end but not invoiced we are doing an accrual entry so we need to ensure the amounts received are fairly accurate.

We over received an item and will not be receiving it in the future so wanted to close out the amount on the PO. I was trying to keep away from creating credit memos at the invoice level and just wanted to enter a negative quantity on the PO. I receive the message "Negative Quantity Lines are not permitted" when I entered a negative quantity. From earlier blogs and forums I have read it looked like negative quantities have been allowed on purchase orders. I was trying to determine if this is a configuration setting or NAV development change from us being on a higher version than the blogs I had read.

Any help in pointing me in the right direction would be appreciated.

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Community Member on at

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RE: Negative Quantity in Purchase Order

Hi Robertas,

I was trying to differentiate between a true Purchase Return Order where we are returning an item to vendor and a receiving error.

From an audit perspective if we have a lot of over receipts its more of a performance issue for our Supply Chain Manager to address with receiving staff (unless they aren't identified when the over receipt is made). We are just setting up our purchasing process, but the Supply Chain Manager will be signing off on adjustments and a report will be developed to identify adjustments (or potential adjustments) for the Site Controller as part of the review process.

Our accounting auditors want to ensure whether adjustments have been properly authorized, reviewed and recorded, it won’t matter if it goes through the accounts payable system though they may flag it if they deem there are an excessive amount of adjustments.

Our Supply Chain Manager came on board last week so we will try out the Purchase Return Order and the Purchase Credit Memo in our test system to see which one they want to run with.

Thanks for the reply

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RE: Negative Quantity in Purchase Order

Thanks Jonathan, I had to get some configuration changes made to get it to work but we may be able to use this.

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RobertasR 5,004 on at

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RE: Negative Quantity in Purchase Order

Hi Ken,

what is your reason to 'keep away from creating credit memos'? I think credit memos or purchase return orders are the correct way of dealing with over-receiving:

1. You still need to invoice the over-received item or it will always be in 'received not invoiced' area (in COA and in expected cost). You can do it by raising a zero value invoice for this one item.

2. Now that you have received the item, you have too many items in your stock, so you need to reduce it. You can do it by negative adjustment, or credit memo. In NAV world the credit memo/return order is the correct way of doing it, and I think audit would like credit memo better...

Robertas

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keoma 32,729 on at

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RE: Negative Quantity in Purchase Order

you could use a return order.

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