What is I/C Day End Processing?

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There are two ways for the program to cost inventory in the Costing tab in I/C Options in I/C Setup:

- Cost Items During Posting 
- Cost Items During Day End Processing

The first option above allows the program to update cost during each time you post an inventory transaction and the second option allows you to update costs when you run Day End Processing.  

Users can perform Day End Processing in Inventory Control, using the I/C Day End Processing screen in I/C Periodic Processing.  If you have Day End Processing cost items is selected, quantities are always updated immediately upon of the transaction. Costs are always processed by Day End Processing.

Use the I/C Day End Processing screen to:

  • Update costing data for all transactions (unless you chose the option to update costing during posting).
  • Produce general ledger journal entries from the transactions that were posted during the day (unless you do item costing during posting or create G/L transactions using the Create G/L Batch icon).
  • Produce a posting journal for each type of transaction that was posted.
  • Update Inventory Control statistics and transaction history.

Day End Processing also performs processing tasks for the Order Entry and Purchase Orders modules, if you have them:

  • Processing transactions that were posted during the day in Order Entry and Purchase Orders.
  • Activating and posting future sales orders and purchase orders that have reached their order date, and updating quantities on sales order and on purchase order.
  • Removing quotes and purchase requisitions with expiration dates up to and including the session date for day-end processing.
  • Updating sales commissions.
  • Creating batches of Accounts Receivable summary invoices and credit notes from posted Order Entry transactions.
  • Deleting completed transaction details if you do not keep transaction history.
  • Updating statistics and history in Order Entry and Purchase Orders.

During Day End Processing, all receipts are posted first to alleviate the possibility of item quantities going negative. Otherwise the system will use the Most Recent Cost for the item instead of the actual cost of the item. 

For example, if, in a single day, you receive a new item and ship it before entering the receipt, the receipt of the goods would be posted before the shipment so the cost form the receipt ( and not the most recent cost) would be used. 

Also another note, when calculating the most recent cost, multiple transaction type processed in the same day (such as receipts) will be processed in the order they were entered, not based on the transaction date used.  

To keep the audit trail and receipts up to date, users should run Day End Processing as part of the daily routine as recommended.  

There is more information in the F1 help menu for Day End processing for your reference.