E1: 41: Inventory Transactions (P4112/P4113/P4114/P4116) (Doc ID 1223674.1)

Last updated on SEPTEMBER 04, 2024

Applies to:

Purpose

Overview

An inventory transaction records the movement of inventory items and creates the associated journal entries. Inventory Transactions are recorded in the Item Ledger (F4111) also referred to as the Cardex. Also, the system updates information in these tables:

- Item Branch File (F4102)
- Item Location File (F41021)
- Account Ledger (F0911)
- Lot Master (F4108)

Every transaction affects accounting information in the system if there is setup in the branch/plant constant for the general ledger interface. The system uses automatic accounting instructions (AAIs) to update the general ledger with all of the accounting information that is related to transactions. AAIs direct inventory transactions to a specific account in the GL. The Inventory Transactions creates batch type N. The AAIs that are most commonly used are 4122 (Inventory) and 4124 (Expense or COGS). If standard costs are used, the system creates journal entries for the variance based on AAI item 4141 (Inventory or Expense COGS).

Unlike sales and purchase orders, an inventory transaction is complete when it is created. The change in inventory is reflected immediately without additional processing.

Important Notes:

1.  The applications in this document do not support Bulk Stock Inventory. For transactions involving bulk items, use the Bulk Stock Movement (P415101) programs found on menu G415011.

2.  Inventory transactions for kit items are supported by using the Copy BOM Form Exit and entering the kit parent, branch plant and quantity.  This will cause the Kit Bill of Material to be pulled into the grid. For an illustration of how this works, please refer to Q&A # 17 on KM document 1305524.1 - E1: 42: Kit Processing FAQ.

3.  Do not use document type IS for normal inventory transactions as described here.  This document type is hard-coded for use in manufacturing transactions, and using it may cause false variances to be reported on R41543 Item Ledger to Account Ledger Integrity Report.

Details

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