Understanding Inventory Issues

Issuing inventory typically involves removing items from a branch/plant or location, adjusting the inventory balance, and recording the transaction in the GL. You can also remove only the cost amounts for an inventory record to devalue the items.

Tasks that relate to issuing inventory items include:

• Recording the use of inventory items by an operating department in the company.

• Removing obsolete or damaged goods.

• Issuing inventory to a job.

• Charging inventory that is used for the repair or maintenance of equipment.

• Copying a bill of materials list for an issue.

To issue inventory, you must enter transaction, item, and accounting information. You can also enter issue-related information for each branch/plant in which an item is stored.

When you enter a transaction, the system displays a document type, batch number, and document number. Record the document number so that you can locate the transaction later.

You can select from several online formats to record and track different types of issues by setting the related processing option:

Format	Description
Standard format	Issue inventory items from a branch/plant.
Equipment format	Record inventory that is issued to a specific piece of equipment.
Subledger format	Debit a specific general ledger account for an issue.
Equipment and subledger format	Record the specific piece of equipment that was issued to a job, and debit a specific general ledger account for an issue.

If you work with a kit, you can issue all of the kit components at once by accessing the Copy Bill of Material function from the Inventory Issues form. This function enables you to issue components without affecting the parent item quantity. If you do not use this function, the parent item quantity might be affected, but the component quantities remain the same. However, never enter an issue for a kit that contains a feature.

Depending on how you set the processing options, you may be able to issue a quantity that is greater than the on-hand quantity for the parent item in a kit. The system displays the parent quantity as a negative number.

You can correct an issue that was made in error by creating a reversing entry. A reversing entry enters a positive quantity and cost amount back into the item information. Because records of each inventory transaction are kept for accounting purposes, you cannot delete the record.