Post Warehouse Cost Adjustments

When the Update Costs in the Warehouse processing is activated, this utility can be used to post the product costs and product quantities to the Fixed Asset Tag in the inventory sub-ledger when the inventory is received into the warehouse, rather than waiting to post the actual costs later when the A/P Invoice is received and posted to the G/L.
This would be desirable if your suppliers' invoices are usually very slow, and the costs need to be updated immediately in the sub-ledger.

Note: The danger with this approach is that the costs entered and posted at the time of inventory receiving may not match the costs entered and posted at the time the A/P Invoice is entered.

The feature to Update Average Cost In The Warehouse can be activated in the Company Inventory Parameters.
This posting program will then become accessible.

Updating the Average Cost in the Warehouse:
This alternative posting method facilitates updating the Average Cost in the Inventory sub-ledger, from the warehouse receiving. The costs used would be the costs on the Purchase Order. This means that the Purchase Order costs must be EXACTLY correct and that the AP invoices issued from that vendor must EXACTLY equal the Purchase Order.

If costs are not correct on the P.O., this alternative cannot ensure that the inventory costs and the General Ledger will be equal. If the costs are different, manual adjustments will be required.

(The standard procedure is to update the cost at the time the AP invoice is received and posted, with the actual inventory amounts to ensure that the costs in the inventory and the General Ledger are exactly in sync.)

Process for Updating Average Cost in Warehouse

1. Sales Inventory
   Make sure the Re-Order Information Window is setup correctly.

2. Rental Inventory
   Make sure the order information in the Re-Order Information Window is correctly setup.
   In the Fixed Asset Tag window, add a blank Fixed Asset Tag, i.e. quantity = 0, and cost = 0, but fill in the Date Acquired and the Depreciation Class. Do this for every new purchase, so that the purchases will be separated by date acquired.
   The Warranty Expiry defaults from the date received plus the number of warranty days as setup for this product group in Groups.

3. Purchase Orders
   Make sure the costs and any LCF calculation are correct.

4. Warehouse Receiving
   This updates the quantity on hand (not the Fixed Asset Tag qty).
   The LCF can be confirmed.
   These transactions are included in Post Warehouse Receiving Cost Adjustments postings, only if Prompt for Cost in the Warehouse is set in the Company Inventory Parameters and a cost was entered. If this flag is not set, it is assumed that the cost is not changed.

5. Post Warehouse Receiving Cost Adjustments
   This updates the average cost on the Inventory sub-ledger, using the costs on the Purchase Orders or Warehouse Receiving and the LCF.
   The costs and quantity are updated on the Fixed Asset Tags and the Warranty Expiry date defaults from the date received plus the number of warranty days as setup for this product group in Groups.

   An audit report prints, showing how the software has calculated the new average cost.
   It uses the same calculation for Average Weighted Cost as used by the standard version of A/P Invoices.

6. A/P Invoices By Purchase Order
   This program will recognize that the costs were already updated, when the invoices were entered.
   Use the Inventory version so that the warehouse receipts are matched to an A/P invoice and the General Ledger is properly updated using the accounts on the Product Classes.

   If Support Application Parameters has been set to Post Duty/Brokerage, Freight and Exchange, these values are posted to the G/L when the A/P invoice is entered.
   The Duty/Brokerage, Freight and Exchange cannot be changed during the invoicing, as it must agree with the costs previously saved in the inventory sub-ledger.

7. Post A/P Invoices
   Refer to Post A/P Invoices for a detailed posting explanation.

   Both the INVENTORY/COGS ADJUSTMENT RE: OVER-SHIPPED ITEMS and the INVENTORY ADJUSTMENTS FOR INTERNAL TRANSFER ITEMS will print if applicable, when posting is done for A/P invoices, if there are any inventory cost amounts that differ from the inventory cost posted in the Warehouse.
   Refer to Post A/P Invoices for further information on these two cost adjustment reports.

Posting Control
This program cannot be run at the same time invoices are being posted in Post A/P Invoices or while inventory receiving records are being entered in Warehouse Receiving

The Post Warehouse Receiving Cost Adjustments program is designed to be run by one operator at a time.
Locking will occur if another operator attempts to run the program at the same time, or if the first operator did not exit the posting program correctly.
A Posting Control Information warning will appear on the screen preventing the second operator from proceeding, and only operators with Security Role permission to reset the Inventory - Warehouse Cost Adjustments flag will have access to the RESET button that unlocks the program.
Whenever the posting control flag for Warehouse Cost Adjustments is reset, an audit record is written to the Delete Log for the Function INWR91.