The ASN system currently imports and processes ASN records for po lines for both stocking and nonstock items.
This section describes how to correct situations where a nonstock item is imported by the system and posted to in transit inventory but the receiving process does not post the receipt for the nonstock item. This situation only applies when the ownership of the goods is transferred to your company at the time of shipment from the vendor.
Background
For a time, Nonstock items were being posted to the In Transit Inventory account in the GL by the ASN program that posts the submitted AP invoice and the ASN records, but these nonstock items were not being posted or matched by the receiving program. This problem was due to version control issues at the sites running the import routines (the current receiving code was not installed at the proper time).
The Current ASN receiving code handles nonstock transactions (the code loads the ref qty in Inventory Transaction based on the quantity of the item being received, it matches the inventory transaction to the appropriate AP invoice, and it creates an additional Journal Entry for the invoice). This journal entry reduces the In Transit account in the GL and it increases the nonstock inventory account (ie the consumables, labor or other account that the nonstock item is set to post to). The nonstock item account is based on the product line that the nonstock item is assigned to.
Note: The receiving behavior for nonstock items that are tied to ASN detail is different than the behavior for nonstock items that are not tied to ASN detail. The system does not normally post nonstock items when a po receipt is processed for the items. The assumption is that the nonstock items will be expensed or posted manually to a consumables or another account using the AP Entry program. ASN receipts for nonstock items are posted to the GL due to the fact that the items are posted in the Inventory In Transit Account in the GL when the ASN records and the invoice for the items is imported into the system. The JE when the item is received is required to reduce the In Transit account balance by the value of the nonstock items being received, and to update the correct “inventory” account for the item (based on the product line). Again, this posting is only needed when the shipment has been included in the In Transit balance in the GL (when the goods belong to you while they are in transit).
Correcting the error
For sites running earlier code - or which did not install the current receiving program when required, the following procedure can be used to correct a nonstock ASN receipt.
1. Update the received quantity in the ASN line for the nonstock item based on the actual quantity of the item that was received (this can be determined by looking at the po line received quantity), and change the status of the ASN record to R (this indicates the item has been partially or completely received).
2. Change the status of the associated AP Invoice record to R (again to indicate that the invoice has been partially or fully received against).
3. Find the Inventory Transaction record for the nonstock receipt, load the REF_QTY field in the record with the quantity received for the nonstock item and load the the AP_NO field in the record with the AP Register number of the appropriate ASN invoice. Load the AP_DATE field in the Inventory Transaction record with the Transaction date recorded in the record.
4. Check the product line record that the nonstock item is assigned to and determine the inventory account used for the item (the prodline stores the autopost number of the account used for the item).
5. Use the local currency value of the nonstock inventory transaction (COST * REF_QTY) to determine the amount of the journal entry that needs to be created for the receipt.
6. Use the Journal Entry program to post an entry for the nonstock receipt. The journal entry should have 2 lines, a credit to the In Transit account and a debit to the “inventory” account specified in the product line for the item. - set src to ap , to create 2 line je for nonstk posting.
7. Using the off line editor for the Journal Entry file, change the source of the JE to AP (so that the JE is included in the AP activity audit routines when the system compares the invoice balance to the postings for the invoice). Load the AP Register or Tran number from the ASN invoice into the REF_NO field in the JE.
8. Use the offline editor for the Inventory Transaction file to load the new journal entry number into the JE_NO field in the record.
9. Run the ASN match receipts program and verify that the ap status is changed to A and that the ASN status is updated to C (closed).