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B1_HTG_882_PerpInvent.pdf
1 Introduction ...........................................................................................................................................6
2 Defining Initial Settings .......................................................................................................................... 7
2.1 Initializing a Perpetual Inventory System ............................................................................................... 7
2.2 Defining Primary G/L Accounts ............................................................................................................ 9
2.3 Defining an Opening Inventory Account ............................................................................................... 12
2.4 Defining Item Defaults ...................................................................................................................... 13
2.5 Defining Warehouses ........................................................................................................................ 14
2.5.1 Drop-Ship Warehouses ................................................................................................................... 16
2.5.2 Defining a Default Warehouse......................................................................................................... 16
2.6 Defining Item Groups ....................................................................................................................... 18
3 Perpetual Inventory System by Moving Average .................................................................................... 21
3.1 Overview ........................................................................................................................................ 21
3.2 Defining Item Cost When Using Moving Average Valuation Method ......................................................... 21
3.3 Examples of Journal Entry Structures When Using the Moving Average Valuation Method ......................... 23
3.3.1 Sales Documents .......................................................................................................................... 23
3.3.2 Purchasing Documents .................................................................................................................. 26
3.3.3 Special Scenarios for A/P Documents .............................................................................................. 31
3.3.4 Inventory Transactions .................................................................................................................. 35
4 Perpetual Inventory System by Standard Price ...................................................................................... 40
4.1 Overview ........................................................................................................................................ 40
4.2 Defining Item Cost when Using the Standard Price Valuation Method ....................................................... 40
4.3 Examples of Journal Entry Structures When Using the Standard Price Valuation Method ............................ 41
4.3.1 Sales Documents .......................................................................................................................... 42
4.3.2 Purchasing Documents .................................................................................................................. 44
4.3.3 Special Scenarios for A/P Documents ...............................................................................................49
4.3.4 Inventory Transactions .................................................................................................................. 53
5 Perpetual Inventory System by FIFO ....................................................................................................58
5.1 Overview ........................................................................................................................................ 58
5.2 Defining Item Cost When Using FIFO Valuation Method......................................................................... 58
5.3 Examples of Journal Entry Structures When Using the FIFO Valuation Method ......................................... 59
5.3.1 Sales Documents ........................................................................................................................... 60
5.3.2 Purchasing Documents ................................................................................................................... 62
5.3.3 Special Scenarios for A/P Documents ................................................................................................66
5.3.4 Inventory Transactions ................................................................................................................... 70
6 Handling Small Values .......................................................................................................................... 74
6.1 Handling Small Values for All Valuation Methods .................................................................................... 74
7 Updating Valuation Methods ................................................................................................................... 76
8 Revaluing the Inventory ....................................................................................................................... 78
8.1 Printing Inventory Revaluation Documents............................................................................................ 83
9 Working with Inventory Audit Reports ..................................................................................................... 84
9.1 Generating Inventory Audit Reports ..................................................................................................... 84
9.2 Examples of Inventory Audit Reports for Different Calculation Methods.................................................... 88
9.2.1 Moving Average .............................................................................................................................. 88
9.2.2 Standard Price ................................................................................................................................ 89
9.2.3 FIFO.............................................................................................................................................. 90
9.3 Cost of Revaluation Document in Inventory Audit Report ....................................................................... 91
9.4 Unexpected Results in Inventory Audit Report ...................................................................................... 91
9.4.1 Difference Between Inventory Audit Report and Inventory Account Balance .......................................... 91
9.4.2 Number of Records Returned Is Too Large ......................................................................................... 91
9.4.3 Unexpected Results Due to Particular Basic Initial Settings .................................................................. 91
9.5 Printing Inventory Audit Reports .......................................................................................................... 94
10 Working with Inventory Valuation Simulation Reports ............................................................................... 96
11 Working with a Purchase Accounts Posting System ............................................................................... 100
11.1 Defining Purchase Accounts ............................................................................................................. 100
11.2 Examples for Journal Entry Structures Used When Working with a Purchase Accounts Posting
System ................................................................................................................................................ 101
11.2.1 Goods Receipt POs and A/P Invoices ............................................................................................. 101
11.2.2 Closing a Goods Receipt PO ...........................................................................................................104
11.2.3 Goods Return ................................................................................................................................104
11.2.4 A/P Credit Memo ............................................................................................................................105
11.2.5 Landed Costs ................................................................................................................................105
12 Authorizations .................................................................................................................................... 107
13 Database Tables Reference ................................................................................................................. 108