A client has set account 9999 as the General Ledger rounding error account in company profile.

When they receive a PO with pro-rated freight, two offsetting entries generally appear in 9999 - a debit for the total freight amount (the freight vendor's name is in the description), and a credit for the pro-rated freight amount (the primary vendor's name is in the description). No problem.

However, four times during the year, the credit for pro-rated freight was a lot less than the freight amount. And when I look at each receipt, I see that the freight was only allocated to some of the received items, not all (the proration method is "by weight").

What did my client do wrong? Is there a way as they are entering the receipt they can be sure that the freight amount is fully pro-rated to the items?

Thanks

Steve

Hi, Steve,

It's hard to say when it is an occasional occurrence. You'll need to determine just what was different at the time. For example, it sounds like the Freight is being added to the receipt rather than to the order? Was this a partial receipt? If the Freight was added to the original order, was it edited when it was received? Was the Freight allocated more than expected on any items? Are receipts done by delivery note or invoice only? Is the Freight to the original vendor or a different vendor?

Probably the best way to ensure the freight is fully pro-rated to the items is to enter the misc. charge on the original order. If the amount differs when it is received, the amount may be edited then. I haven't been able to recreate what I believe you're describing yet.

Dear Softrak

Ryan and I did some testing and we were able to confirm that there is a program problem (bug). We did not perform a comprehensive test but at least we were able to recreate the problem in sample data with the following scenario.

We created a misc charge that is 100% prorated based on relative weight.

We made sure that two items had weights.

We created a three line PO, one vendor only, including the above two items and the above misc charge, and posted the PO.

We created a receipt from this PO, clicking on Receive All to receive both items in one shot. But then we went back and edited the second item, changing the quantity received back to zero. This is a typical scenario for receiving multiple line POs where a few items remain on backorder.

We posted the receipt as a delivery note.

We viewed the receipt, and could tell right away that the pro-rated charges were not fully allocated to the one remaining received item. Instead, the amount allocated to the one item was based on both items having been received.

The problem is that when you zero out the received quantity of an item that has had pro-rated charges assigned, the system does not re-allocate the pro-rated charges to the remaining items, but simply leaves the allocated charges out of balance.

I would appreciate it if you could do further testing and suggest a work-around to allow the system to re-allocate pro-rated charges after items on a receipt have been edited (or even better, fix the program to have this happen automatically). Honestly, the pro-ration should not occur until the receipt is posted.

Thanks

Steve

Hello Steve (and Ryan),

Many thanks for going to the trouble of isolating the causes of something that happens four times a year at your client. Now that the circumstances are understood, people will be able to isolate the problem and create any adjustments required.

As I said at this year's AOC, we have ceased further development on Purchase Orders for Adagio and hope to be shipping Adagio PurchaseOrders by the end of the year. We'll try and make sure that this particular receipting scenario does not cause the problem you describe.

Thanks again for tracking this down.