Advanced Receiving: Passing Off Adjustments to G/L

(Advanced Receiving users only)

When an item’s average cost has been updated by the Receiving Documents Report (RRV), option F, the system calculates how many of that item were sold between the original receipt date (when the Receiving Report (RRP), option F, ran) and now. Then it makes an entry, if necessary, for the difference to the Inventory Adjustments and COGS Adjustments accounts in General Ledger. For an example, click hereFor example,  the vendor’s invoice arrives and you discover an item’s cost is higher than you received with the Receiving Report (RRP) Option F. In addition, you have been selling that item at POS for weeks at the lower average cost, thereby misstating your
inventory value. After posting the new cost in MRV and finalizing it with the Receiving Documents Report (RRV) options CF, the system calculates the difference between the incorrect cost of goods sold caused by the receiving error, and the actual cost of goods sold based on the correction entered in MRV. General ledger entries are then made for that difference amount to be passed off by the Daily Journal Report (RDJ), Option Z.
The accounting entries created by RDJ option Z, for an average cost increased by Advanced Receiving are:

Inventory Adjustment     COGS Adjustment
__________________    ______________       
     | Credit             Debit  |
     |                                  |
     |                                  |
 .

Passing Off Inventory and COGS Adjustments to G/L

To pass off COGS and Inventory adjustments to General Ledger, run the Daily Journal Report (RDJ), with Options FZ (F = Finalize Transactions, Z = Department Passoff). Since you are already using Department Passoff, RDJ with options FZ should already be in your end-of-day queue. If you need to add RDJ to your end-of-day queue, click here.

Printing a General Ledger Edit List

To print an edit list of the entries created by RDJ, options FZ, use the same procedure that you use when printing an edit list of entries that you enter in the General Journal Transactions (GGMU) window.

1. Print the Transaction Edit List (RGGL) report.  Review this report carefully to check for any mistakes or problems with unposted transactions.

2. Make any necessary modifications to the transactions. For more information about modifying unposted journal transactions, click here.

3. After printing the edit list, post the General Ledger transactions.