OE: Difference between QtySold and QtyShipped

SOLVED

Hello there

I have noticed that for a given invoice in my SalesHistory table (OESHDT) the QtySold=110. But then when I go to my PostingJournal (OEAUDD) for that invoice I only have a QtyShipped = 98. So am I correct in thinking:

1. When I sell something (that is I generate an invoice), immediately that something is put into the SalesHistory table

2. Only when I ship (ie release items) to my customer, does that item get recorded in the PostingJournal (OEAUDD)

3. If the sum(QtySold) in my SalesHistory table > sum(QtySHipped) in my PostingJournal... that means I have sold items that I am yet to ship

4. Assuming I am on the "Standard Costing" method, the cost of the item I am selling only truly gets reflected once I ship it (*not* when I sold it). That is to say, I can indeed get a COGS in my SalesHistory table (but many times it is zero), but the cost reflected in my PostingJournal - - - am I correct that it is more accurate? 

Is my understanding correct or am I so far off the path the earth may as well flat? (its feeling like that :) )

Michelle

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  • +1
    verified answer

    Hi Michelle

    There are 3 documents produced in OE.  Orders, Shipments and Invoices. 

    The Order Document has no effect on any entries in AR or the GL.  It is simply a contract between you and the customer.  Your customer has agreed to buy these products from you at these prices and you have agreed to sell them to the customer at those prices. 

    The Shipment Document is a record of you shipping the products the products the customer.  Posting a shipment removes the shipped items from inventory (credits inventory and Debits the shipment clearing account in the GL). 

    The Invoice Document is posted against the Shipment or Shipment(s).   It is possible to Invoice Multiple Shipments.  The invoice records the 'Sale' putting it in AR and Sales on the GL and debits Shipment Clearing from the Shipment(s) and debits COGS on the GL.

    It is common in most companies to ship and invoice in one step.

    Running Day End creates all the entries and records them in Sales History among other things.  As a general rule, Day End manages all the costs related with items wherever they might occur (IC, OE or PO)

    HTH

    Dana

  • 0 in reply to Dana B. Stidsen

    Hi Dana, goodness I was completely off track! Thank you very much. I am creating a sales report by going directly into the database. Your answer definitely gives me a better understanding of what is happening in the back end. Initially, I had posted an additional question here under your answer, but I will post it as a separate thread - (and link to it here)

    Thank you once again
    Michelle

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  • 0 in reply to Dana B. Stidsen

    Hi Dana, goodness I was completely off track! Thank you very much. I am creating a sales report by going directly into the database. Your answer definitely gives me a better understanding of what is happening in the back end. Initially, I had posted an additional question here under your answer, but I will post it as a separate thread - (and link to it here)

    Thank you once again
    Michelle

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