Correction of Item Journal Entries

Beatrice

Hi,

A quite big figure keeps accumulating every time in the Inventory Adjustment account. Actually they are using Item Journals as a workaround for their PC Assembly process.

But we found that users made the following mistakes:

User entered an Item Journal with Entry Type: Negative Adjustment but they entered the Quantity as Negative.

User entered an Item Journal with Entry Type: Purchase instead of Positive Adjustment.

They entered only Negative Adjustments or only Positive Adjustments item journals.

Please advise how the above can be corrected.

Thanks and Regards,
Beatrice.

AdamRoue

Fot the double negative your stock is overstated twice, because you booked it in when you should have removed it, therefore you need to identify these and then create a journal removing from stock twice as many as is on the incorrectly posted journal.

For the second type this will affect the GL accounts controlled by the type, therefore have a look at the impact, if it needs to be reveresed you need to decided if this is purely a financial movement or if you want to affect inventory by reversing the positive purchase and then booking it in again as a positive type

Beatrice

Fot the double negative your stock is overstated twice, because you booked it in when you should have removed it, therefore you need to identify these and then create a journal removing from stock twice as many as is on the incorrectly posted journal.

So you suggest that we make a Negative Adjustment using Item Journal removing from stock twice as is on the incorrectly posted journal.

DO WE NEED TO APPLY ENTRIES WHEN WE MAKE THIS CORRECTION?

If Yes, what about Item Ledger Entries where Open is No??


Thanks and Regards,
Beatrice.

AdamRoue

Lets get the simple bits first Your stock is massively overstated!
If you had one in stock and did a negative negative you now have two in stock when you should have zero.

I am not sure if you can identify these transactions or how many of them there are, if we are talking about a few you can use the applies-to field for open lines on the journal. Depending upon the costing impact and the idenitifcation and time I would not apply personally, but that decision is yours. Where it is closed you can do nothing, you might want to consider any COGS implications as you have pushed these through to a sale for an item that never existed!

I believe you are average costing :evil: from other posts and this will naturally be a consideration, but all you can really do is take a line and decide what to do about the costs, you can revalue any costs etc as you usee fit.

Beatrice

Hi,

Thanks for the reply.

We have been able to identify the entries and we found that there are more than 1000 entries like these and we found that most of these entries are NOT Open.

So I think that the best that can be done is to enter a Negative Adjustment journal to readjust the stock value.

If we decide to revalue any costs, is it possible to perform like a mass revaluation on stock value?

Please advise.

Thanks and Regards,
Beatrice.