PO Module in 4.40 - Negative Balance Adj - When you enter a receipt of goods and a tier of the
item has a negative balance a "Negative Balance Adj" entry occurs debiting raw material and crediting purchase price various. I don't think this should automatically happen. Sometimes balances go negative for reason that we don't want to correct. And why does this only happen when you do a receipt of goods? I think it would be better if you could hit a button when you want these adjustments to occur but only if and when you want them to be made. As it is now this causes an increase in RM on the books vs the valaution and credits and expense account when it really should not in our case. There are legitimate reasons why our balances on certain parts go negative at times.
by: Barbara S. | over a year ago | Financial Management
Comments
This entry is only happens if the unit cost of the item received is different from the unit cost applied when the item went negative. For example, if you had an item with unit cost of $50. You sell (or use) to a negative balance for whatever the reason. You do a receipt of goods for the item for a cost of $55. The Negative Balance Adjustment posts the $5 unit cost variance so inventory is then stated at the $55 unit cost instead of the $50 unit cost.