9.04. Physical Inventory

In Socrate Cloud the inventory count is operated from the Physical Inventory window, located in the Material Management menu. To enter an inventory count document press the New Record button. The following fields are available:

• Document No - the document number (if not entered manually the system will automatically generate a number);

• Document Type - select a document sub-type with the base document type: "Material Physical Inventory". Details in Document Types;

• Warehouse - select the warehouse where the inventory count is done;

• Movement Date - date of the inventory count;

• Account Date - date used to register the resulting accounting transactions;

• Business Partner- select the business partner responsible for the inventory count;

• Create Inventory Count List button - starts the process used to generate inventory count lines;

• Update Quantity button - starts the process used to reset the Quantity count value to the initial stock value, or 0;

Reference section - contains accounting dimensions used for analysis, determined by the accounting schema. Details in Accounting:

Status section - displays information about the document status (according to the document workflow):

• Approved - indicates if the document needs approval before being processed;

• Approval Amount - approval amount set by the document workflow. Details in Workflows.

• Document Status - indicates the current status for the document:

  • Initial Status: "Drafted" - the document is being defined. Editing is allowed.

• Document Action button - used to change the document's' status. Available document actions are:

  • "Complete" -> Document Status: "Completed" - the document has generated its effects within the system. Editing is no longer allowed;

    • the stock will be updated according to the document lines;

  • "Void" -> Document Status: "Voided" - the document effects within the system have been cancelled;

    • when voiding a "Drafted" document, all the quantities will be set to 0 and the document will become uneditable;

    • when voiding a "Completed" document, a new identical document will be generated with opposite quantities on lines and the following specific properties:

      • Document Date = date on the voided document;

      • Document Status = "Reversed";

      • Description = voided document number;

  • "Reverse" -> Document Status: "Reversed" - the document effects within the system have been reversed;

    • a new identical document will be generated with opposite quantities on lines and the following specific properties:

      • Document Date = current date;

      • Document Status = "Reversed";

      • Description = reversed document number;

  • "Close" -> Document Status: "Closed" - no other document action can be applied. Documents cannot be generated based on this document. A document can only be closed if it has no unprocessed documents associated.

Create Inventory Count Line Process

The process is used to automatically generate inventory details, which represent the inventory count list. Before running the process you can enter the following parameters:

• Locator - generates inventory lines only for products in this warehouse locator;

• Locator Key, Product Key - generates inventory lines only for products/locators with their name containing the entered value;

• Product Category - generates inventory lines only for products in this category;

• Business Partner - currently not available - do not select;

• Inventory Quantity - generates inventory details only for products with their stock values:

  • > 0 - greater than 0;

  • < 0 - less than 0. The cell stock can be negative, with the "balancing" amount located in another cell;

  • = 0 - displays only products with zero stock;

  • not 0 - only products with stock not 0 will be displayed;

• Set Inventory Count to:

  • On Hand Qty - generates inventory lines using the initial stock. The Quantity and Quantity count fields on each line will have the initial stock value;

  • Zero - generates inventory lines without using the initial stock. The Quantity and Quantity count fields will be 0;

• Delete old/existing records - if checked the process will remove existing inventory lines. This is usefull to prevent creating duplicate lines;

Press the Start button to run the process and generate the inventory count list.

Update Quantities Process

The process is used to update the values for the Quantity count field on inventory lines, using the initial stock value or 0. Before running the process you can enter the following parameters:

• Set Inventory Count to:

  • On Hand Qty - resets the Quantity count field on each line to the initial stock value;

  • Zero - resets the Quantity count field on each line to 0;

Press Start to run the update quantities proces.

Inventory Details

Inventory details represent the inventory count list. The details can be entered manually or automatically, using the Create Inventory Count List process. The Inventory Count Line tab contains a line for each product on the inventory count list. To add a new line press the new record

button. The following fields are available:

• Locator - select the cell where the product is located;

• Product, Attribute Set Instance - the product and it's attribute set;

• Quantity - enter the counted product quantity, in the selected unit of measure

• UOM - if a conversion between units of measure has been defined, an alternate unit of measure can be used on the document;

• Quantity count - the final quantity resulted from the inventory count. After completing the inventory this will be the new stock value;

• Quantity book - the product stock value, in the selected locator;

• Inventory Type - determines the account used when posting inventory count differences;

• Has Instance - indicates the fact that the product is split into instances for all stock transactions;

Actual Costs section:

• • Cost Price - unit cost, according to warehouse discharge, for the product. Details in Costs.

• Cost Value - displays the total cost: Qty * Cost;

Inventory Transaction tab - displays the resulting inventory transactions after processing the document;

Attributes tab - displays the resulting product attribute set instances after processing the document.

Accounting

When posting the inventory, the following accounting transaction generation rules will be applied:

1. If the quantity difference is negative (inventory minus) and is registered in the "Warehouse Differences" account, then you will have to apply the following:

Debit: Warehouse Differences = Credit: Product Asset, where:

Warehouse Differences, depending on the priorities order, is taken from:

• Product's accounting definition, or (starting with version 12.07)

• Product Category's accounting definition, or (starting with version 12.07)

• Warehouse's accounting definition, or

• Accounting schema's definition: default accounts: Warehouse section.

Product Asset is taken from:

• Product's accounting definition.

2. If the quantity difference is positive (inventory plus) and is registered in the "Warehouse Differences" account, then you will have to apply the following:

Debit: Product Asset = Credit: Warehouse Differences,

with the same determination rules as in 1.

3. If the quantity difference is negative (inventory minus) and is registered in an Expense Amount - type account that automatically requires you to complete a Charge account, then you will have to apply the following:

Debit: Charge Expense = Credit: Product Asset, where:

Charge Expense is taken from:

• Charge's accounting definition denoted in the respective line of the inventory.

Product Asset is taken from:

• Product's accounting definition.

4. If the quantity difference is positive (inventory plus) and is registered in an Expense Amount - type account that automatically requires you to complete a Charge account, then you will have to apply the following:

Debit: Product Asset = Credit: Charge Revenue, where:

Charge Revenue is taken from:

• Charge's accounting definition denoted in the respective line of the inventory.

Product Asset is taken from:

• Product's accounting definition.