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Applying Issues to Receipts |
  
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Applying Issues to Receipts |
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AdaptAccounts tracks each individual Receipt and Issue for a Product. For each transaction detail item it maintains the original Quantity received or issued together with the current Quantity Balance.
When the transaction is first entered, the Quantity Balance is the same as the original Quantity.
The Quantity Balance for a Receipt shows how much of that Receipt is still in Inventory.
The Quantity Balance for an issue shows how much of that Issue has not yet been applied to Receipts for that Product.
When the Quantity Balance is greater than zero, the Receipt or Issue transaction detail item is termed Active.
When the Quantity Balance becomes zero, the Receipt or Issue transaction detail item is termed Inactive.
Issues are applied to Receipts on either a FIFO or LIFO basis. FIFO is the default. You can change this to LIFO using the Inventory Setup task.
FIFO
FIFO is an acronym for First-In First-Out. It deducts Issues from the Quantity Balance of the earliest Receipt(s) of a Product. It then recalculates AverageCost as Average FIFO Cost based on those remaining Active Receipts.
LIFO
LIFO is an acronym for Last-In First-Out. It deducts Issues from the Quantity Balance of the latest Receipt(s) of a Product. It then recalculates AverageCost as Average LIFO Cost based on those remaining Active Receipts.
Apply Issues to Receipts process
This process occurs when the Apply Issues to Receipts task is run. You should run this task at the end of any day in which transactions occurred that affected Inventory. Such transactions include Inventory Issues and Receipts, Sales Invoices and Purchase Order Receipts.
This process also updates the Cost amount fields for an Issue transaction detail item based on the Cost from the corresponding Receipt transaction detail item(s) to which it was applied.
After Issues have been applied the system updates affected Product Warehouse and Product records with their new Average Cost.