If I had an item that was rec'd on a PO in error, I would complete the recp't as an invoice and right click on that same recp't click on the return, pick the lot that the item went into and complete return. Then after a day end was completed and batch posted in accts payable, they would auto apply & clear each other out (under the vendor).

My biggest issue is I can no longer choose the lot that the item was rec'd in, if I have two lots in my inventory that were purchased from two diff vendors at two diff costs and I want to remove the one in Lot 2 I no longer have this choice when entering a negative recp't.

Now I will need to go back into inventory and enter an adjustment to clear out the lot rec'd in error and clear the neg. lot entered by having to do a neg. recp't.

This will add to a persons workload because you now will need to enter two inventory adjustments to clear lots, you will need to manually apply the credit recp't to the invoice to clear from vendor account.

You need to find away to put all the previous functions back into the new program. Please try and correct these issues, sooner rather than later.

If there is a diff way of completing the work I list above which I have not found please let me know.

Hi Heather

You are using FIFO (or LIFO) costing, and you probably shouldn't be. But even if you should be, the purpose of using FIFO is not to track different costs from different vendors - that is done directly in PurchaseOrders (or you can do it in Inventory using GridView). FIFO is solely used to "manipulate" financial statements, and only is important for companies that have slow turnover and wildly varying costs. For example, you buy a widget for $10 and then before it sells you buy another one for $50. When you do sell one, FIFO would send $10 as the cost of sales to your financial statements, Moving Average would send $30.

FIFO adds a much greater level of complexity to managing inventory versus Moving Average, and almost always results in an insignificant difference in your financial statements.

So you should change your costing method to Moving Average, stop fretting about lots, and track the cost of the same item from different vendors in PurchaseOrders itself.

If it matters so much which vendor's item you are selling to a customer (because the customer can tell the difference), then they need to be assigned different item codes.

Steve

Hi Steve

Below is one of my concerns, I am not responsible for the financial side of the company.

Right now we have 5 lots showing, example the negative receipt I entered is in Lot 3 and the lot rec'd in error is under Lot 2 and the only way I know of clearing those lots so a sale does not pull from Lot 2 once Lot 1 is sold, is to enter an inventory adjustment to clear both lots out.

Answer to your question is yes this company uses FIFO.

Question: When you are talking about using the moving average, does this mean that there are not diff lots showing under an item in inventory, does this mean there is only one lot and all receipts are lumped together?

Yes, all receipts are "lumped together", for costing purposes to the GL. They are not lumped together in Inventory history or in PurchaseOrders.

Steve