Microsoft Dynamics NAV (Archived)

PO Return

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Posted on by Shailesh Pandey

350

Hi All Experts,

I have an query i have made the PO /01

for eg :

item qty Price

item1 1 $10 , then this four account will hit

-$10 Accounts Payable,

+$10 Inventoy,

-$10 DCA,

+$10 Purchase

and sale that particular item, now again i purchase the same itemin second PO / 02 item1 qty 1 and the price $15 .and again sale that particular item. now there is no inventory i have , meanwhile i return the first PO / 01 , now i return the PO these four accunt will effect

+$10 Accounts Payable,

-$10 Inventoy,

+$10 DCA,

-$10 Purchase

But my costing at that time $15 for that item.

Now system will pass these two entry

$5 Inventoy,

$5 DCA

now i want to ajust this particular amount so that my balancesheet will correct.

any idea where i should adjust this amout, becuase here my purchase and inventory both are afftected.

Regards,

Shailesh

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TWBlaisdell on at

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Re: PO Return

Hi Shailesh,

Thank you for the update. You will want to work with your partner to identify a game plan for correcting data. The Forum is meant to manage questions regarding the functionality within NAV. To manage the data correction, you would have to analyze the Chart of Accounts and Posting Groups and G/L Balances to identify the next steps, which is not something we can do through this tool. My first instinct is that Purchase, Direct Cost Applied, and Inventory Adjustment are all part of Cost of Goods Sold Section, so the closing of the Income Statement will zero these out at the end of the year, so that piece doesn't matter as much. However, this is dependend upon how you set up the accounts in the first place. You can possibly just post a reclassification entry to DR/CR Direct Cost Applied and CR/DR offset to Inventory Adjustment if you want to balance the Purchase/Direct Cost Applied. Again, work with your partner to analyze the effect.

The Balance Sheet Inventory balance can be managed through Revaluation Journal. You can specifically revalue an ILE by setting the Applies To Entry in the Revaluation Journal Line - keep in mind though that setting the 'Applies To' to specifically revalue an entry will complete a backdated revaluation to the original Posting Date. Therefore, the period would need to still be open. To do a current Revaluation, you would use the Function > Calculate Inventory Value.

I hope the information helps you move forward.

Best Regards

Tom
Shailesh Pandey 350 on at

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Re: PO Return

Soory to repost because earlier font size is not visiable so change the font size

Hello Tom,

First thanks for the reply, now what ever the suggestion you have given it will work infuture to prevent PO return, now my problem is this

1. We are using Basic Module of Navision where thers is no warehouse module we have.

2.The data which i have to rectfy is the previous one , this problem i came to know when my Accounts person are making the Balancesheet for the last year , now there show a huge difference between System generated COGS and the Manual process of COGS ( Opeining Inventory + Purchase - Closing Inventory). Now when i gone through the Chart of account than i able to find out there are some inventory item whose DCA & COGS has a difference ,

Here , Navision allow negative Inventory , so by mistake my Purchase person first Return the PO and after while the return the SO.

Now what happen in system suppose i brought the item1 at price $10 , here iam using the FIFO as a costing method, now what happen suppose he return it after 1 month at that time the costing of the item1 $15., here i have not enable the exact cost reversing method ,

now at that time suppose my inventory of that particular account is 0, suppose by mistake my purchase person return the purchase order( because navison allow negative inventory) now what going to happen

$10 will go to each account DCA,AP,INVT,Purchase. inspite of this Nav will make addtional enrty to adjust the $5, because at that time costing of the item1 is $15.

$5 DCA and $5 INVT.

Now mean while after this my Sales Person return SO, $10 will go the respected amount.of Sales,

Now my problem is this two additional entry

$5 DCA and $5 INVT.

because they are impacting me DCA & Invt , due to this my valution and the balanceheet gone wrong.

how i can adjust this amount. can i use the revalution journal for this , if yes can you please explain how to use this.

Regards,

Shailesh
Shailesh Pandey 350 on at

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Re: PO Return

Hello Tom,

First thanks for the reply, now what ever the suggestion you have given it will work infuture to prevent PO return, now my problem is this

1. We are using Basic Module of Navision where thers is no warehouse module we have.

2.The data which i have to rectfy is the previous one , this problem i came to know when my Accounts person are making the Balancesheet for the last year , now there show a huge difference between System generated COGS and the Manual process of COGS ( Opeining Inventory + Purchase - Closing Inventory). Now when i gone through the Chart of account than i able to find out there are some inventory item whose DCA & COGS has a difference ,

Here , Navision allow negative Inventory , so by mistake my Purchase person first Return the PO and after while the return the SO.

Now what happen in system suppose i brought the item1 at price $10 , here iam using the FIFO as a costing method, now what happen suppose he return it after 1 month at that time the costing of the item1 $15., here i have not enable the exact cost reversing method ,

now at that time suppose my inventory of that particular account is 0, suppose by mistake my purchase person return the purchase order( because navison allow negative inventory) now what going to happen

$10 will go to each account DCA,AP,INVT,Purchase. inspite of this Nav will make addtional enrty to adjust the $5, because at that time costing of the item1 is $15.

$5 DCA and $5 INVT.

Now mean while after this my Sales Person return SO, $10 will go the respected amount.of Sales,

Now my problem is this two additional entry

$5 DCA and $5 INVT.

because they are impacting me DCA & Invt , due to this my valution and the balanceheet gone wrong.

how i can adjust this amount. can i use the revalution journal for this , if yes can you please explain how to use this.

Regards,

Shailesh
TWBlaisdell on at

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Re: PO Return

Hello Shailesh,

Thank you for posting your question on the Microsoft Dynamics Community Forum. The general scenario comes up quite a bit, so it is a good one to document on this site for all users.

The only confusing thing that I want to question first is - you state that you have two Purchase Orders and then posted Sales Orders of both Purchase Orders' quantity. How can you then post a Purchase Return if you have no quantity to return? Does one of the Sales Orders get returned so you now have 1 back in stock?

The reason I ask is because, with Bin Mandatory being enabled, whether it is through just checking the single box or by selecting Directed Put-away and Pick, the system will not allow for negative inventory. Similarly, you can't use Warehouse Picks if you need to pick the Return Quantity for the Purchase Return Order. Please keep that in mind as I go through the process below. The process below works well in this scenario, but it may take some additional intervention as covered in the following paragraph.

You are able to process a Purchase Return Order in Dynamics NAV (since Version 5.00) and have the system correctly manage the cost of the Return Order by using the Exact Cost Reversing Functionality in Dynamics NAV.

The Exact Cost Reversing Feature is enabled for Purchase Returns by setting the Applies-To Item Entry field or on the Sales Returns through the Applies From Item Entry Number field.

With Purchase Returns and the Feature "Get Posted Document Lines to Reverse" along with the option "Return Original Quantity", you can get the system to specififcally apply the Purchase Return even though an applied Sales Item Ledger Entry has been posted against the quantity.

In order to do this, you would create a Purchase Return Order and select the "Get Posted Document Lines to Reverse" Function. One of the options/checkboxes at the top of the processing screen is the "Return Original Quantity". The feature allows for the selection of the original quantity and the ability to process an applied purchase return against the original quantity, even though a sale has been previously applied. As part of the process of posting the Return Order, the system will unapply the Sales Item Ledger Entry from the original Purchase, specifically apply the Purchase Return to the original Purchase, and then re-apply the Sale that was unapplied to some other Inbound quantity.

However, because you have no quantity in stock based on your example, the system would have to leave the Sale open with Remaining Quantity to be applied until further Inbound Quantity (either Purchase/Positive Adjustment/Sales Return/Output/etc.) comes in to be applied against. Because negative quantity would exist, you will be blocked from the process under certain Location configurations. Therefore, you may be required to process a Sales Return or some other inbound quantity entry, such as a Positive Adjustment, prior to processing the Purchase Return in your example under certain Location Setup. Then, the system would have the avaiable quantity to apply the sale against.

Hopefully, the guidance provided helps you move forward.

Best Regards

Tom

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