Good Afternoon.

In my last blog “How can I correct data entry errors?” I made some suggestions for financial modules. In today’s blog the focus is on transactions with the core in inventory module or anything that affect inventory quantities.

Committed or posted shipments cannot be reversed. Only a customer return can be processed. Committed customer returns will create a pending credit memo in AR if the return is for credit. If the return is processed after the customer payment had been received and applied to an invoice to close the credit memo created when customer return gets committed a custom refund can or will need to be created and applied to the credit memo. 'Returns Allowed' must be selected in Maintain Items on the Buy & Sell tab for the item being returned. If it is not selected, then the line will not be available for the return.

Posted PO receipt of goods can only be ‘undone’ by processing a vendor return. The next step is to process Receipt of Invoice. Make sure that you select Debit Memo as the type. After posting of the Receipt of Invoice the debit memo can be applied to the original receipt of invoice.

If inventory was received with incorrect cost Sage 500 ERP will allow you to correct the cost using Cost Tier Adjustment task in IM module. Only inventory with the quantity on hand can be adjusted for the cost. For items with FIFO, LIFO or Actual valuation methods Sage 500 will allow you to select the tier that you need to adjust. In that case you select the tier by the date it was created. If the inventory that was received with incorrect unit cost has already been shipped or issued GL journal adjustment can be used to adjust the value of cost of goods sold.

Material issue transactions can be reversed while still in WIP – not absorbed by progress step and finished good yet. And so is with Labor transactions. Backflushed transactions created by the labor transaction/step being reversed will also be reversed as long as they are still in WIP. However if progress step has been processed and finished good item quantities on hand have been updated a Work Order Progress Returns or Production Entry Returns can be used.

This task will return finished goods inventory back to the work order/WIP that originally produced inventory quantities. Returns result in a reduction of inventory quantities as well as costs at the then current costing amount which may be different than the original amount (e.g., average cost for the original progress transaction for a raw material may have been $1.05 while the current average cost for the item is $1.10). A variance may be reported where current costs do not match original costs. There must be sufficient on-hand inventory to return the materials to the work order if the system is not set-up to allow negative on-hand inventory. The general ledger will be adjusted to correct the previous progress entry posting.
Light Manufacturing and Advanced Kitting customers who use the Production Entry task will be able to process Production Entry Returns despite the fact that they cannot maintain or manually create work orders.  The user will, however, select the original Production Entry transaction as opposed to the Work Order transaction from the look-up screen. All material and labor transactions posted against the production entry will be reversed.