Prepaid Inventory Management with ITR

Overview

You can use Inventory Transaction Register (ITR) to account for prepaid inventory. When a prepaid inventory voucher is manually added to pay the vendor, the GL’s Prepaid Inventory account is updated. Later when the purchase order has been received and finalized, the system will recognize that a prepaid voucher exists for that PO and not create an additional voucher. In ITR, the quantities received are noted as Prepaid, thus when the GLP passoff from ITR occurs, the prepaid inventory amount is moved into regular inventory.    

Set Up Options

Your system must have the following options enabled to use this feature:

• Option 43 “Inventory Transaction Register on System” must be set to Yes. This enables G/L passoff from ITR. (Note: Only an Epicor representative can set this option to Yes)
• Option 402 “Prevent AP Passoff for Prepaid Vouchers?” must be set to Yes.
• Option 9939 “Create G/L trx’s from ITR record for Prepaid purchase orders” must be set to E–Eligible or N–Not eligible, but can be changed.

G/L Passoff Setup

• Purchasing Passoff to A/P (APP) should already be set up.
• Set up new passoff types for Prepaid Inventory in Set Up G/L Passoff (GLSET), both at the Store and Department levels. The G/L account specified in Prepaid Inventory should be the same G/L account used when creating the manual voucher for the prepaid inventory.

Using Prepaid Inventory Management

The procedure below describes Prepaid Inventory Management from the beginning, where the voucher is entered to pay for the prepaid inventory, to the end where the purchase order is received.

1. Add a new purchase order in Purchasing and Receiving (MPO) and post the intended line items.
2. In New A/P Transactions (ATMU), add a new Regular (R-type) or Prepaid (P-type) voucher. To indicate that this voucher is for "prepaid inventory," enter the following:
1. In the Voucher Reference field, enter "-PREPAID."
2. On the Distributions tab of the voucher, the G/L account you assign should be the same G/L account defined in GLSET for Prepaid Inventory.
3. In the PO Number field, enter the PO number from step 1.
3. Post the voucher via Post Transactions to A/P Files (RATJ) and pay the vendor accordingly. RATJ updates the purchase order that was entered in the PO Number field of the voucher to indicate that this PO has been paid by setting ‘NOAP’ in the PO header codes. This indicator tells APP to not generate a voucher when the PO is eventually received.
4.  When the merchandise arrives, receive the purchase order in Purchasing & Receiving.

The purchase order should be for the exact amount as the previously posted voucher.

The items received are updated in ITR with the Sub-Source indicating "Prepaid" and the GL Passoff flag set to how option 9939 is indicated. If the G/L Passoff flag is set to E in ITR for the items received, then when General Ledger Passoff (GLP) for ITR runs, it credits the Prepaid Inventory G/L account and debits the A/P Control Maintenance (ACON) Purchases G/L account.