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When I am on indirect to PO, if I change cost or qty after I have received the items in PO, how does this affect my inventory?
When I am on indirect to PO, if I change cost or qty after I have received the items in PO, how does this affect my inventory?
The below is true for costing method weighted average.
Add a PO for item A, qty of 5, cost of $5.
1) When the PO is posted, the on order amount is updated with qty 5 in INLOC and an "O" type transaction (stock on order) is created in the INTXDH, qty 5, no cost.
2) When the PO is received, INLOC is updated as follows: the on order amount is flagged back to 0, the PO indirect is updated with the qty received, 5, and the qty on hand field is updated with qty of 5. (At this point, qty on hand would not be reflected in the valuation report so that it may be balanced to the general ledger.) In INTXDH, an "O" type transaction is created for -5, and an "H" type (PO indirect receipt) is created with a qty of 5, cost amount of $5. An "H" type transaction is also created in INTXSM with the qty and extended amount.
3) When the Receipt is posted through AP, the INLOC is updated as follows: last cost is updated with unit cost, $5, distributed is updated with extended cost, $25, and PO indirect is set back to 0. In the INTXDH, an "H" record is created for -5, cost $5, and a "P" (purchase) transaction is created for qty 5, unit cost $5. In the INTXCT, a cost layer is created for stock amount $5, stock qty and stock qty remaining 5. In the INTXSM, a "P" and "Z" record are created reflecting qty of 5 and extended amount of $25.
Before I posted into AP, I changed qty from 5 to 7.
The affects are as follows: In the INLOC, on hand qty is not updated with correct qty, indirect to PO now shows as a -2, last, avg, and distributed costs are correct. In the INTXDH, an "H" transaction is created with a -7 instead of -5, and a "P" record is created with a qty of 7, and correct cost $5. The INTXCT records a cost layer for stock amount $5, stock qty and stock qty remaining 7. In the INTXSM, a "P" and "Z" record are created reflecting qty of 7 and extended amount of $35.
Before I posted into AP, I changed cost from $5 to $6.
The affects are as follows: In the INLOC, last cost is updated with unit cost, $5, while average cost is now recorded as $6, and distributed is updated with extended cost, $30. PO indirect is set back to 0. In the INTXDH, an "H" transaction is created for -5, cost $5, a "P" record is created with a qty of 5, and a cost of $5, and an "E" type transaction (cost adjustment) is created with a qty of 5, and an amount of $5, which is the total cost difference (5 x $1). The INTXCT records 2 cost layers: one for stock amount $6, stock qty and stock qty remaining 5, which is flagged as an active cost layer, and one for stock amount $5, stock qty and stock qty remaining 5, which is flagged as an archived cost layer (inactive). In the INTXSM, a "P" record is created that reflects a qty of 5 and a cost of $25, an "E" record is created with a qty of 0 and a cost amount of $5, and a "Z" record is created that reflects a qty of 5 and extended amount of $30.
The above is true for FIFO, with the exception of the INTXSM file: An "H" record is recorded for each of the above. For a PO with no change, qty and amount show 0. For the a PO with a qty change, qty shows as -2 and amount shows as -10. For a PO with a cost change, qty and amount show as 0.
Changing quantities after receipt of a purchase order is an unsupported option. We highly recommend posting the voucher, posting a debit memo, and then re-entering a voucher if quantities need to be changed. This will eliminate incorrect quantities on hand.
