Stores Inventory Posting Strategies

Overview

Stores Inventory entries update the General Ledger when the Receiving batch, Order Entry, or Inventory Count Adjustment is posted or processed. These postings are controlled or limited by posting codes on the transactions. The posting codes are assigned to the transaction based on the General Ledger Posting Preferences definitions (GLUTSPPP). Posting Preferences for Receiving and Order Entry are defined under subsystem SI and a specific ledger code. Posting Preferences for Inventory Count Adjustments are defined under subsystem SC. In these examples we will be using ledger GL.

Although there are two Posting Preferences screens for the Stores Inventory processes, there are three General Ledger Subsystem Interface (GLUTSPSI) screens. They are GL / SI / RCVG, GL / SI / DIST, and GL / SI / CONT. The GL / SI / RCVG is used for Receiving Batches, GL / SI / DIST is used for Order Entry postings, and GL / SI / CONT is used to record Inventory Count Adjustments.

Receiving may happen through a Receiving batch or with PO Receiving. Only SI Batch Receiving will post to the General Ledger. Using this method, the General Ledger inventory amount will be updated at the same time Stores Inventory is updated. PO Receiving will update Stores Inventory, but it will not update the General Ledger.

Typically, when PO Receiving is used, the General Ledger is updated when the Accounts Payable batch posts to the General Ledger. In this case, the Accounts Payable batch will have the General Ledger Inventory account as the transaction account number. This will debit the Inventory account and credit the Accounts Payable control account.

When a Receiving Batch is created it will usually have an Inventory control account number that will be the credit entry in the General Ledger. The debit entry will be the Inventory account. Then when the AP batch posts the payment for the inventory received, it will have the Inventory control account as the transaction account number. This will debit the control account and credit the Accounts Payable control account, clearing the Inventory control account of received but unpaid inventory.

Base Setup

The basic Accounts Payable posting strategy will debit the expense (or account number in the batch) and credit cash. Variations to this might result based on answers to the following questions:

Is Batch or PO Receiving used? If Batch Receiving is being used, it will be necessary to set up posting strategies for xx/SI/RCVB.

Should "Quoted" price be retained? If so, it will be necessary to create posting logic to record differences between the quoted and base prices.

Create/Update Batch File