IC -> Tansactions -> Adjustments instead of Receipt Adjustment issue.

SUGGESTED

Long story short...I was trained by someone who wasn't very familiar with BW.  I just learned I was handling Receipt Adjustments incorrectly.  We are FIFO if that matters.  To adjust a cost on a closed PO I was instructed to perform an Adjustment (NOT RECIEPT ADJUSTMENT) and then recreate the PO adding a -1 (example PO 11111 became PO 11111-1) the new PO would be received at the correct pricing. 

The new owner of the company was looking at different reports and found that we had returned $110,000.00 during May.  This is accurate in the sense that they had me doing Adjustments instead of Receipt Adjustments.  My limited knowledge tells me that this returned amount is offset by the new PO's with proper pricing. 

Is there a way to correct these to the proper way?

If not, how can this be proven to be accurate? Is there a report I can pull up?

Do I leave it as-is and just be diligent it is done properly from now onward?

Thanks in advance, Adam

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    SUGGESTED

    Adam- It sounds like you have a issue that is too complex to be addressed on this forum.  I would suggest you may want to work with your accountant to determine the correct values for your inventory stock due to your adjustments and how your company has been processing their inventory transactions.  It sounds like your quantities may be correct -  if you were adjusting out the quantity from the original PO Receipt, but your values (cost) maybe off due to the adjustments and possibly the timing of the adjustment with taken into consideration of your costing method FIFO. 

    If you need to correct your costs for your inventory, review this Knowledge Base article:

    How to change the unit cost of a part (18789)

    https://support.na.sage.com/selfservice/viewdocument.do?externalID=18789

    It also appears with the information above, that both Inventory and the Inventory Purchase Receiving accounts may not have been reconciled on a regular basis as well.  I have included some article below on reconciling that should help get you started.

    How to reconcile Inventory Control to General Ledger (24595) https://support.na.sage.com/selfservice/viewdocument.do?externalID=24595

    How to reconcile the Inventory Purchase Receiving (IPR) account (20728)

    https://support.na.sage.com/selfservice/viewdocument.do?externalID=20728

    How to Reconcile the Inventory Purchase Receiving (IPR) account for the first time (73835)

    https://support.na.sage.com/selfservice/viewdocument.do?externalID=73835

    In addition, if you are looking for training for inventory, we do offer classes through our Sage University www.sageu.com.  There are 2 classes for inventory – a basic and an advance that are both good to take.  The advance class goes into reconciling of the IPR (Inventory Purchase Receiving).

    Sincerely,

    Coleen

Reply
  • 0
    SUGGESTED

    Adam- It sounds like you have a issue that is too complex to be addressed on this forum.  I would suggest you may want to work with your accountant to determine the correct values for your inventory stock due to your adjustments and how your company has been processing their inventory transactions.  It sounds like your quantities may be correct -  if you were adjusting out the quantity from the original PO Receipt, but your values (cost) maybe off due to the adjustments and possibly the timing of the adjustment with taken into consideration of your costing method FIFO. 

    If you need to correct your costs for your inventory, review this Knowledge Base article:

    How to change the unit cost of a part (18789)

    https://support.na.sage.com/selfservice/viewdocument.do?externalID=18789

    It also appears with the information above, that both Inventory and the Inventory Purchase Receiving accounts may not have been reconciled on a regular basis as well.  I have included some article below on reconciling that should help get you started.

    How to reconcile Inventory Control to General Ledger (24595) https://support.na.sage.com/selfservice/viewdocument.do?externalID=24595

    How to reconcile the Inventory Purchase Receiving (IPR) account (20728)

    https://support.na.sage.com/selfservice/viewdocument.do?externalID=20728

    How to Reconcile the Inventory Purchase Receiving (IPR) account for the first time (73835)

    https://support.na.sage.com/selfservice/viewdocument.do?externalID=73835

    In addition, if you are looking for training for inventory, we do offer classes through our Sage University www.sageu.com.  There are 2 classes for inventory – a basic and an advance that are both good to take.  The advance class goes into reconciling of the IPR (Inventory Purchase Receiving).

    Sincerely,

    Coleen

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