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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Treatment of Inventory...
Small and medium business | Business Central, N...
Suggested Answer

Treatment of Inventory stock committed in contract at time of data migration into BC

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Posted on by Community Member

Hi experts

My scenario:  Client pre-sold 1000 units in a contract with a committed delivery date in 6-months' time.  The contract was prepaid so technically, the inventory stock should be reserved for their customer.

But to keep the stock for 6-month is not cashflow-effective, so I believe requisition worksheet and planning worksheet should help in better balancing their future demand and supply.

If the 1000 units are loaded as opening stock balance without any Sales Order (since this has been posted and payment collected), I'm thinking of using Warehouse Shipment to record this obligation to ship 1000 units in the future so that when running Requisition Worksheet or Planning Worksheet, this quantity demand will be reflected in the planning calculation.

The purpose is to allow usage of the 1000 units during the 6-month period and plan to purchase or assemble sufficient in time to meet the 6-month contractual obligation.

The warehouse location is set for Receipt and Shipment with Bins.

I used configuration packages for tables 7320 and 7321 and tested with 2 transactions.  The header configuration package uploaded without errors.

For the line config package (table 7321), I removed validation against Sales Orders, but now the error is in Quantity.  (Quantity must not be greater than Qty Outstanding)

Both fields are set with the same quantity and the UOM is EA for each line.

config-package-error.jpg

What is this error validating?

Does anyone have suggestions on handling this 1000 committed units (without Sales Order) so that these show up in planning?

Thank you

I have the same question (0)
  • Suggested answer
    Andy Sather Profile Picture
    Andy Sather on at

    Hello,

    If you don't get further responses to this issue, you may want to raise a support request to Microsoft support via your CSP / Partner.

  • Suggested answer
    Community Member Profile Picture
    Community Member on at

    Peter,

    I want to make sure I understand you... your Customer sold 1000 units of an Item to deliver in 6-months. The customer prepaid for this. The Inventory is NOT in-stock. If  I followed correctly, I would have created a Payment against the Customer for the prepayment using the Cash Receipts Journal. The Balancing Account would be that of GL Account against the Accounts Receivable for that Customer. This updates the sub-ledger since the GL is already updated when you transition to BC.

    Now I would enter a Sales Order for the Items you contracted for delivery in 6-months. Running the Requisition Worksheet or Planning Worksheet (MRP) will create a PO request for the 100 units. Also, if this is an Assembly Item, the BOM Components would create PO's for the components and depending if the Assembly Item is M-T-S or M-T-O an Assembly Order will be created.

    You cannot do what you are attempting with Warehouse documents.

    Thanks,

    Steve

  • Community Member Profile Picture
    Community Member on at

    Hi Steve

    Thanks for your options.

    The items are in inventory stock but 'reserved' for the delivery in 6-months.

    When they move to BC, I'll be migrating the stock count into BC inventory.  I need a method to indicate the 'future' demand of this 1000 units in inventory when planning or requisition worksheet is used.

    Entering a Sales Order crossed my mind, but this would also place an invoice entry in Receivables which should not be there.  If I add prepayment to the invoice, I have to post the payment applied and this adds an entry to the bank (which has already been paid - hence double-counting).

    It seems difficult to 'reserve' the opening stock quantities without any related documents.

    I tried using Config Package to bring in warehouse shipment lines but the validations keep failing.

    Peter

  • Community Member Profile Picture
    Community Member on at

    My workaround is to:

    1. create Sales Orders with future Requested Delivery Date.  I then created the Warehouse Shipments (this is a location with Directed Put-away and Pick).  The shipments create a demand on the inventory stock.

    Both SO and Shipment are not posted.

    2. the demand from step 1 is used in Planning Worksheet or Requisition Worksheet to help manage ordering or assembly

    3. when the shipment date is due, the warehouse shipment is then picked and posted (inventory stock is physically shipped out)

    4. the Sales Order is then posted

    5. a credit note (Sales CR) is then created to a G/L line (this would be a Credit to deferred revenue since the committed items were paid) and applied to the posted Sales Invoice

    If the items were not paid, the posted Sales Invoice will create the receivables for the delivery.

  • Suggested answer
    Community Member Profile Picture
    Community Member on at

    Peter,

    So you have the Inventory In-Stock but will not ship them until 6-months later. I would create a Sales Order and you can reserve the Inventory against the Sales Order and you will be covered. Sales Orders do not post an invoice entry or hit receivables, so not sure why you think this.

    On the Sales Line you can click Reserve against the Item Ledger Entries in-stock.

    You should be fine here.

    Thanks,

    Steve

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