Understanding Inventory Transactions
To help you manage the complex recording and accounting functions that are involved in maintaining an up-to-date inventory, you might need to record inventory movement between branch/plants and between locations in a branch/plant. For example, you can use the issue transaction to remove damaged or obsolete goods from the inventory. Occasionally, you might need to adjust inventory for damaged items or discrepancies. Alternatively, you might use the transfer transaction to move inventory from one branch/plant to another. After you move inventory, the system adjusts the quantity balance for the item and creates the appropriate general ledger (GL) entries for the transaction.
You can move inventory using these programs:
Inventory Issues (P4112)
Inventory Adjustments (P4114)
Inventory Transfers (P4113)
When you issue inventory, you remove it from a location. When you adjust inventory, typically you move it from one location to another to reconcile a discrepancy between the number of items that are recorded at a location and the actual count. You might also adjust inventory out of a location when it is damaged. When you transfer inventory, you move it from one location to another.
How you enter transaction information depends on the item and the specific business environment. For example, you can issue, adjust, or transfer items by entering quantity or cost amount, or quantity and cost amount information. Entering transactions by the cost amount helps you accommodate variances that are due to different costing methods that are used in different branch/plants.
The system records each transaction in the Item Ledger File (F4111) and updates information in these tables:
F4102
F41021
F0911
F4108
Every transaction affects accounting information in the system if you have set the branch/plant constant for the general ledger interface. The system uses automatic accounting instructions (AAIs) to update the general ledger with all of the accounting information that is related to transactions. AAIs direct inventory transactions to a specific account in the GL.
Use these programs to review the updated accounting information when you are working with a transaction:
Program |
Description |
|---|---|
General Journal Review (P0911B) |
Provides information on two levels: Summary or detailed batch level. The summary level displays batch information by user, status, number, and entry date. The detailed level presents batch information by journal entry, such as the transaction type for the document. Individual document level. The individual document level displays information for each journal entry, such as the updated account and the amount that is posted to the account balance. |
Journal Entries (P0911) |
Displays the GL accounts that a transaction is written to before it is posted. |
Item Ledger Inquiry (P4111) |
Displays all transactions for an item. |