VCB Perform Inventory Write Off During A/P Posting (E36)

Purpose: Use this screen to define whether the system adjusts merchandise out of inventory if you specify a “To” location for a vendor charge back.

Yes/No field: Select this field if you want to the system to adjust merchandise out of inventory for items on a vendor charge back that have a “To” location. The fact that you specify a “To” location means that the system performs a transfer (T) when you process the inventory transaction for the vendor charge back. The adjustment takes place when you process the A/P credit associated with the vendor charge back. The system will perform a V (return to vendor) transaction for the items on the charge back in the “To” location. If you later reverse the charge back, the system processes a reversal of the V transaction, which adjusts the inventory back up in the “To” location.

Leave this field or leave it unselected if you want the system to leave the merchandise in the “To” location when you process the A/P credit. You will need to use the Work with Inventory Transactions function to adjust the inventory out of the “To” location. If you later reverse the charge back, the system processes a reversal of the V transaction, which adjusts the inventory back up in the item's original location (the “From” location you selected at the Vendor Charge Back Detail screen).

If you do not specify a "To" location when you process a vendor charge back, the system never performs a transfer (T) for the merchandise; it simply processes a return to vendor (V) transaction out of the item's original location when you process the vendor charge back. If you later reverse the charge back, the system processes a reversal of the V transaction, which adjusts the inventory back up in the item's original location.

The different ways in which the system can handle the inventory transactions for vendor charge backs, depending on the presence of a "To" location and the setting of this system control value, are described in this table.

VCB Perform Inventory Write Off During A/P Posting Setting	“To” Location Specified?	Inventory Transactions when you Process Inventory	Inventory Transactions when you Process the A/P Credit	Inventory Transactions when you Reverse the Charge Back
Unselected	Yes	T (transfer) out of original location and into "To" location	none	V (return to vendor) into the original location -- on-hand increases
Selected	Yes	T out of original location and into "To" location	V out of "To" location -- on-hand decreases	V into the "To" location -- on-hand increases
Unselected or Selected	No	V out of original location -- on-hand decreases	none	V into the original location -- on-hand increases
If the system control value is unselected, and you specify a “To” location, you will need to adjust the inventory down at the “To” location outside of the vendor charge back process.

For more information: See Working with Vendor Charge Backs (WVCB).