Exact Globe

 

Release 380: Automate perpetual or non-perpetual inventory process

The perpetual or non-perpetual inventory entries are generated automatically upon the creation of purchase invoice (via menu path Finance/Entries/Purchase).  This process is executed automatically in "real time" rather than processing it manually via a separate menu path.  Purchase invoice is directly charged to a purchase cost and the balancing entry is created immediately.  Non-perpetual inventory process sets the relevant stock transactions "hidden" from financial accounting as and when these transactions are created.  The new balancing entry that is created in the process is consistent with the purchase invoice and is easily tracked.

 

Perpetual inventory

 

Right upon the creation of purchase invoice, the system will automatically generate the correct entries as follows:

 

Journal	GL	Dr	Cr	Remark
General	Stock	12.34		Receipt
	ITR		12.34	Receipt
Purchase	Purchase	12.34		Invoice
	VAT	2.34		Invoice
	Creditor		14.68	Invoice
Purchase	ITR	12.34		Invoice
	Stock change		12.34	Invoice

*RED indicates record updated/created

 

Instead of generating the new entry lines in General journal (from the current perpetual inventory process), these entry lines are generated in Purchase journal upon the creation of purchase invoice, without relying on the perpetual inventory process right after the reconciliation process, thus making it independent of the reconciliation process.  Hence, the auto perpetual inventory process is as "real time" as possible.

 

Non-perpetual inventory

 

This is similar to perpetual inventory process above.  The entry lines generated are the same.  It has an additional step to update those stock transactions when the process is done (saved and close/exit).  It will make the receipt, fulfillment, stock count, return receipt, return fulfillment entries, and etc, "hidden" from financial accounting purpose.

 

 

A.  Create purchase invoice

 

Creating a purchase invoice (via menu path Finance/Entries/Purchase) will have ITR account set to Purchase account, and create the entry of debit (Dr) ITR credit (Cr) Stock change, using the same Purchase journal number, Our ref., Entry number, Entryguid, and etc.  The automation of perpetual or non-perpetual inventory process is executed independently from reconciliation, therefore, adhering to the legal requirement of those related legislations.  And this will also have a consistent approach for the following two main scenarios: 

• Purchase invoice entered with purchase order (PO) receipt available

• Purchase invoice entered without PO receipt available

 

(i) Valuation method = SCP-Classic

 

For SCP-Classic valuation method, entering of purchase invoice and selecting the PO receipt line, will have the purchase invoice and PO receipt automatically reconciled.  Upon the processing of purchase invoice, Purchase journal will execute the automation of perpetual or non-perpetual inventory process accordingly.

 

Journal	GL	Dr	Cr	Remark
General	Stock	20.00		Receipt
	ITR		20.00	Receipt
Purchase	Purchase	12.30		Invoice
	VAT	2.34		Invoice
	Creditor		14.64	Invoice
	ITR	20.00		Invoice
	Stock change		20.00	Invoice

Note: Auto reconciliation will not generate price difference entry, but create the separate perpetual or non-perpetual entry of Dr ITR Cr Stock change of an amount equal to the receipt ITR.

 

If however no reconciliation is done automatically due to certain conditions not met, upon closing the purchase invoice, Purchase journal will also execute the automation of perpetual or non-perpetual inventory process accordingly.  The purchase invoice will then have to be manually reconciled with the receipts.

 

(ii) Valuation method other than SCP-Classic

 

For other valuation methods, entering of purchase invoice and selecting the PO receipt line will not have the transactions automatically reconciled (as per existing logic).  Upon the processing of purchase invoice, Purchase journal will execute the automation of perpetual or non-perpetual inventory process accordingly.

 

Journal	GL	Dr	Cr	Remark
General	Stock	20.00		Receipt
	ITR		20.00	Receipt
Purchase	Purchase	12.30		Invoice
	VAT	2.34		Invoice
	Creditor		14.64	Invoice
	ITR	12.30		Invoice
	Stock change		12.30	Invoice

 

Note: When the current financial period is closed, it is not possible to create any purchase invoice, and no automation of perpetual or non-perpetual inventory process will be executed.

 

(iii) Purchase account on Item group

 

For situation where any item within the purchase invoice has no Purchase account exist on Item group (in menu path System/Logistics/Item groups), upon closing the purchase invoice, the execution of auto perpetual or non-perpetual inventory process will return a message (Image 1).  Purchase invoice will still get created, but no perpetual or non-perpetual inventory is processed.

 

Image 1

 

 

B.  Edit purchase invoice

 

Editing of purchase invoice will result in transaction previously reconciled to become unreconcile (as per existing logic).

 

Image 2

 

Upon opening an existing Purchase journal, the entries will be Dr Purchase Cr Creditor, once Edit button is clicked:

 

(A) If there exist any associated entry previously created by the perpetual or non-perpetual inventory process, it will prompt a message.

 

Image 3

 

Selection: Yes
 

System will update the entry line from Purchase account to ITR account, and Purchase journal screen will refresh and display the ITR account when: 

• Purchase invoice with item code and Purchase account, where the Purchase account exist on Item group (in menu path System/Logistics/Item groups)

 

Otherwise, there will be no changing of Purchase account to ITR account, if:

• Purchase invoice with or without item code, and with Purchase account, where the Purchase account does not exist on any Item group

• Purchase invoice with no item code, but with Purchase account, where the Purchase account exist on any Item group

 

Selection: No
 
Edit button is not enable, and cannot proceed with edit feature of purchase invoice for changing any details.  No replacement of any Purchase account with ITR account, purchase invoice remains unchanged, and no auto perpetual or non-perpetual inventory process will be executed.

 

(B) If there is no associated entry exist, no message will be prompted, Purchase account will not be changed, and no auto perpetual or non-perpetual inventory process will be executed.
 

Upon closing the Purchase journal, Purchase journal will execute the automation of perpetual or non-perpetual inventory process accordingly.  Similarly, for situation where any item within the purchase invoice has no Purchase account exist on any Item group (in menu path System/Logistics/Item groups), the auto perpetual or non-perpetual inventory process will return a message (Image 1 above).  Purchase invoice will remain unchanged, and no perpetual or non-perpetual inventory is processed.

 

Extra Notes

 

For situation where a purchase invoice is created with manual input of Purchase account entry line or lines, and without any ITR account line exists (Image 4), there will be no auto execution of perpetual or non-perpetual inventory process.  Upon editing the purchase invoice, the warning message (Image 3) will not show.

 

Image 4

 

For situation where a purchase invoice is created with manual input of Purchase account entry line or lines, and with any ITR account line exists (Image 5), the auto perpetual or non-perpetual inventory process will be executed.  Upon editing the purchase invoice, the warning message (Image 3) will show, and all the Purchase accounts (inclusive of those manually inputted) will be changed to ITR accounts.

 

Image 5

 

 

 

C.  Reconciliation

 

Reconciliation can be done manually later between ITR of receipt line and ITR of purchase invoice line, via menu path Inventory/Warehouse management/Reconcile.

 

Valuation method = SCP-Classic

 

For SCP-Classic valuation method, the invoice amount is to be updated to cost price and entries of Dr ITR Cr Stock change to update the same.

 

Journal	GL	Dr	Cr	Remark
General	Stock	20.00		Receipt
	ITR		20.00	Receipt
Purchase	Purchase	12.30		Invoice
	VAT	2.34		Invoice
	Creditor		14.64	Invoice
	ITR	20.00		Invoice
	Stock change		20.00	Invoice

Note: Reconciliation will not generate price difference entry, but update the entry of Dr ITR Cr Stock change of an amount equal to the receipt ITR.

 

For purchase journal in close period, logistic reconciliation in next open period, will not generate price difference entry, but the difference is in the form of Dr ITR Cr Stock change.

 

Journal	GL	Dr	Cr	Remark
General	Stock	20.00		Receipt
	ITR		20.00	Receipt
Purchase	Purchase	12.30		Invoice
	VAT	2.34		Invoice
	Creditor		14.64	Invoice
	ITR	12.30		Invoice
	Stock change		12.30	Invoice
	ITR	7.70		Invoice
	Stock change		7.70	Invoice

 

Valuation method other than SCP-Classic

 

For other valuation method, the receipt amount is to be updated to cost price (as per existing logic).

 

Journal	GL	Dr	Cr	Remark
General	Stock	12.30		Receipt
	ITR		12.30	Receipt
Purchase	Purchase	12.30		Invoice
	VAT	2.34		Invoice
	Creditor		14.64	Invoice
	ITR	12.30		Invoice
	Stock change		12.30	Invoice

 

For receipt in close period, logistic reconciliation in next open period, the difference will be generated onto General ledger in the form of Dr ITR Cr Stock.

 

Journal	GL	Dr	Cr	Remark
General	Stock	20.00		Receipt
	ITR		20.00	Receipt
Purchase	Purchase	12.30		Invoice
	VAT	2.34		Invoice
	Creditor		14.64	Invoice
	ITR	12.30		Invoice
	Stock change		12.30	Invoice
General	Stock		7.70	Receipt
	ITR	7.70		Receipt

 

 

D.  Existing menu path: Inventory/Warehouse management/Perpetual inventory or Inventory/Warehouse management/Non-perpetual inventory

 

The existing menu paths will be retained for cases where there are old transactions that have not had perpetual or non-perpetual entry created, or for those purchase invoices in closed period, but choose to reopen that period, and execute the perpetual or non-perpetual inventory process manually.  However, the logic for these menu paths remains the same as per current operation, but with exception for invoices that have already been processed with perpetual or non-perpetual inventory via purchase invoice will not be displayed.

 

 

E.  Other stock transaction applications

 

Applications listed below will execute the automation of non-perpetual inventory process upon processing and exiting of these applications. 

• Count

• Interbranch transfers

• Internal use

• Landed costs

• Location transfers

• Purchase orders receipt

• Production (issue, receipt)

• Production returns (issue, receipt)

• Returns (PO, SO, RTV, RMA)

• Service realization

• Sales orders fulfillment

• Stock revaluation

• Stock value adjustment

 

 

F.  Performance impact

 

It is expected that the performance for purchase invoice, reconciliation, and the existing menu paths Inventory/Warehouse management/Perpetual inventory or Inventory/Warehouse management/Non-perpetual inventory will be affected.  Slower processing will be experienced in these areas.

 

 

 

     

Main Category:	Support Product Know How	Document Type:	Release notes detail
Category:	Release Notes	Security  level:	All - 0
Sub category:	Details	Document ID:	14.768.506
Assortment:	Exact Globe	Date:	09-05-2017
Release:	380	Attachment:
Disclaimer