Hello Prima,
Thank you for posting on the Microsoft Forum.
Some of the response is dependent upon what Location Card setup you have enabled. However, for now, I will provide thoughts regarding general guidance.
With Case 1, this depends to some extent on the business side of the transaction and which party assumes responsibility for the spoilage/shrinkage during shipment. For example, does the Vendor bill the company for 100 whether they receive all of the quantity or not? Or, does the Vendor cover the loss in shipment? A user can change quantity to Receive to 90 and receive the actual quantity. Then, the warehouse would have to post receiving of the other 10 and then post a Negative Adjustment through the item Journal and use the Applies-To Entry to remove the quantity lost during shipment. This would allow for invoicing the full 100KG but manage correct quantities. By using the Applies-To Entry, we specifically remove the excess inventory and costing is managed correctly for the inventory that was lost. If the Vendor will ship the other 10 separately to cover the loss, then you receive the 90 and wait for the other 10 to be received.
With Case 2, it is similar to the loss scenario above. The Warehouse would receive the 90. Then to clear the Transfer Order, the warehouse would receive the other 10 and post the Negative Adjustment of 10 through the Item Journal similar to the above.
With case 3, we are looking at a similar discussion to Case 1. Which party assumes the responsibility for the loss? The company shipped 100 KG. Do they bill for the full 100KG and the customer assumes the loss or not? Depending upon the answer, you would have to determine whether an additional shipment would need to be made for 10 KG and you would record the negative adjustment for 10 KG to remove the extra 10 KG from inventory.
With case 4, I would similar to Case 1 recommend separate posting of Receipt of 90 KG and 10 KG. If using Bins, this would allow the user to separate out the quantity into separate bins. Then, you can post a negative adjustment for the 10 and set the Applies-to Entry No. to clear the inventory and avoid any residual costing issues.
With case 5, to fully document the scenario, you would possibly want to update the PO to add a line for Item Type B and receive it. Then, you would create a Purchase Return Order for Type B, send the item back to the Vendor, and wait for the correcting shipment to be sent by the Vendor. Of course, if the company decides to keep the Type B rice, then you would need to determine from a business perspective how to manage this. Does the user just change the Item No. to a different Item on the PO and then receive the correct Type B Item? Or, because of pricing, maybe the company wants to pay the Type A price but get the Type B rice as received. Then, you could receive and invoice the Type A Rice, but then complete a Negative Adjustment to clear the Type A inventory and post a Positive Adjustment for the Type B Rice.
These are some thoughts on the processing. I hope the information helps.
Best Regards,
Tom B
Share
Report
255
All responses (
Answers (
