If batch processing is selected, the application will record receivings, transfers, issues, and adjustments of inventory. When transactions are entered, they are stored in the Inventory Transaction File. Distributions to G/L are required for issues, receivings, transfers, adjustments to item quantities and adjustments to item costs. The Serial/Lot or LIFO/FIFO Layer adjustment does not record G/L distributions since this transaction is used to reconcile the Layer File and Item File quantities. In layer adjustment transactions, it is assumed that the Item File is already reconciled with the General Ledger.
The value of inventory being affected may be distributed to more than one account for all transactions except transfers.
After verifying the transactions via the edit list and making any corrections, they may be posted by the Post Inventory Transactions application. During posting, the transactions are removed from the Transaction File, inventory adjustments are completed and new transactions are recorded to the Inventory Transaction Audit File and I/M Distributions to G/L File.
This type of transaction processing provides the user with several other benefits, including the capability to record the period beginning balance for every stocked item in the Item File as of an entered date. For more information, see the Set Trx Audit File Beg. Balances section of this manual.
Another advantage of using batch processing is the option to create distributions to multiple G/L accounts during Physical Count Processing. For more information, refer to the in the Physical Count Processing section of this manual.
Adjusting Average Cost
Very commonly, the situation will arise that receivings are entered from the packing slip before the actual invoice arrives. Since the packing slip does not usually provide the unit cost, some method must be used to make sure the unit cost does ultimately get entered correctly, since this will affect the average cost for the item.
If the new unit cost is unknown at the time of receiving, simply press RETURN for that field, which will cause the item's last cost to be accepted. Unposted batch receipts may be changed and then posted. If a receipt has been posted, a cost adjustment (C type) transaction must be used to adjust the cost.
If your company uses the Elliott Purchase Order and Receiving package, it is strongly recommended that you use that package wherever possible to enter receivings transactions. This is because certain quantities pertaining to an item, which have importance to the Purchase Order and Receiving package, are not processed using the Inventory Management package. Receivings processed by the Inventory Management package will not tell the whole story for the Purchase Order and Receiving package.
LIFO And FIFO Cost Method
A layer is a single record in the LIFO/FIFO File that records for each item each receipt or purchase and associated cost and quantity. Receivings from both the Inventory Management or Purchase Order and Receiving packages will create LIFO/FIFO layers. Posted credit memos from the Customer Order Processing package will also create a layer. Layers are removed in the appropriate order as inventory is relieved. Issues from the Inventory Management or posted invoices from the Customer Order Processing package will either remove layers or reduce layer quantities based on needed quantities.
Each receipt relates directly to a record or layer in the LIFO/FIFO File. Batch receipts do not create layer records until they are posted. Changes may be made to these transactions until they are posted. If a receipt has been posted, a layer adjustment (L type) transaction must be used to adjust the layer file.
The LIFO/FIFO cost method does not allow stocked items to have a negative quantity on hand or allow layers with negative quantities.
Transactions cannot be purged from the Transaction Audit Trail File until their associated layers have been deleted from the LIFO/FIFO layer file. Only transactions, whose layers have been completely issued and deleted, will be purged.
Detailed layer information by item may be obtained through a report option on the Stock Status Report application.
If the Serialized/Lot Items flag is S in I/M Setup, then serialized items and transactions are allowed. All items are not automatically assumed to be serialized. The second screen of Item File Maintenance has both a serialized item question and length of warranty question. These fields are used to selectively create serialized inventory.
Each posted receipt or issue of a serial item creates a record in the Serial/Lot File. These records may be inquired or printed through the Serial/Lot Stock Status Inquiry, Serial/Lot Stock Status Report, and Issue History Report.
Serial stock records are created by receivings from the Inventory Management, Purchase Order And Receiving, and Manufacturing packages. Production reporting may be performed in Bill Of Material Processor to produce serialized stock. Posted credit memos from the Customer Order Processing package may be used to return serialized items to stock. Serial stock records are relieved and serial issue records are subsequently created by issue transactions from the Inventory Management package and posted invoices from the Customer Order Processing package. Unposted invoice type orders and selected orders from Customer Order Processing will allocate serial inventory. Also, unposted Inventory Management issues and transfers will allocate serialized inventory.
Each inventory receipt, issue and adjusting transaction relates directly to a record in the Serial/Lot File. Transaction quantities may be larger than one but the system will prompt for an equal number of unique serial numbers. If a transaction for a serial item has been posted, a layer (L type) transaction may be used to add or delete serial receipts from the Serial/Lot File.
Entry of serial numbers on receipts is not mandated. Also, serial numbers issued or sold do not have to be in stock. This flexibility allows serial items and warranty dates to be tracked after the sale only. Serial numbers may be entered on the picking ticket generated by the Customer Order Processing package.
If the Serialized/Lot Items flag is L in I/M Setup, then lot items and transactions are allowed. All items are not automatically assumed to be tracked by lot. The second screen of Item File Maintenance has a lot number question to allow selective creation of inventory items requiring lot tracking.
Each posted receipt or issue of a lot item creates a record in the Serial/Lot File. These history records may be inquired or printed through the Serial/Lot Issue History Report and Serial/Lot Processing application.
Lot records are created by receivings from both the Inventory Management or Purchase Order And Receiving packages. The Production Transaction Processing application may also be used in Bill Of Material Processor to produce lots. Posted credit memos from the Customer Order Processing package may be used to return stock to its original lot. Lot quantities are reduced and lot issue records are subsequently created by posted issue transactions from the Inventory Management package and posted invoices from the Customer Order Processing package. Unposted invoice type orders and selected orders from Customer Order Processing will allocate lot quantities. Also, unposted Inventory Management issues and transfers will allocate lot quantities.
Each receipt relates directly to a stocked lot record in the Serial/Lot File. Deleting a receipt transaction before it is posted will not affect the associated lot. It will only remove the transaction from the I/M Transaction File. Deleting an issue transaction will only effect that transaction and the quantity allocated field for that item. If a transaction for a lot item has been posted, a layer (L type) transaction must be used to adjust the Serial/Lot File.
Items with lot tracking are not allowed to have a negative quantity on hand nor will the system allow lots with negative quantities.
The total quantity on hand from the Serial/Lot File must match the item quantity on hand. However, allocated quantities may not match since Customer Order Processing only allocates lots after line items are selected. This allows orders to be placed for out of stock items with no lots available.
After a lot is completely issued or sold, it remains in stock with a quantity of zero. The lot must remain in stock if returns are anticipated so that original expiration dates may be tracked. These zero lots may be purged from the Purge Zero Quantity Lots in the Serial/Lot Processing application through a selected cut off date.
Select Inventory Transaction Processing from the pull down I/M Processing window. The following screen will then be displayed:
Inventory Transaction Processing Entry Screen
The following options are available:
* Select the desired mode from the Inventory Transaction Processing menu bar
* Enter the data requested on the screen
To return to the menu bar, press the ESC or F10 key. To leave this application, press X for EXIT when positioned at the menu bar.