Depreciate Stock - Processing Overview

When the Depreciate Stock option is used, the system requies you to identify the Depreciated Item Type or version you are transferring the item to.  This Return Type Determines the format of the Depreciated Item Number itself.  Common Types might include Cosmetic, OpenBox, and Rebox Items, and these types might use Item extentions of –COS, -OB, and –RB.  When you select one of these Return Types, the system adds the item extension to the item being processed, checks the length (it may not be over 16 characters), and then checks to see if the depreciated item exists in the Catalog file and the Inventory File in the Location you have selected for processing.

If not, the system creates the Depreciated version of the item in the Catalog file, and the Inventory files as required.  Add text on create logic with item, no on hand, item and on hand, etc.  If the item that you are transferring to exists in any inventory location and there is any on hand quantity for the item, the system will use the cost from the existing item when processing the transaction.  If the

The system then actually transfers the quantity being processed from one item number to another.  The quantity transfer takes place after any other transaction processing associated with the Depreciate Item transaction. 

For example: If you are disposing an RA line and depreciate the item being disposed, the system will first credit the customer using the original item number (to maintain the proper sales history for the customer and the item number, and recognize the appropriate costs for the return), then convert the item to the depreciated version of the record that has been selected.

If a Pending Return to Inventory is being processed, the system will first create the Return to Inventory transaction or RI Inventory transaction, recognize any gain or loss for that transaction, then convert the item and serial numbers being processed.

When the Depreciate Stock transaction is processed, the system creates a Type “CI” or “Convert Item” transaction to show the conversion of the item to the depreciated item number selected.  The CI Transaction has two lines for each transaction – one line shows the quantity reduction for the original item and the cost at the time the item was reduced.  The other line shows the increase to the depreciated item and the cost used for the increase (this will be based on the inventory cost if the depreciated item was onhand in any inventory location), or on the current original item cost and the factor defined for the depreciated item (if the item was not on hand in any inventory locations).

If the item that you are depreciating is serialized (Serial Y or S in the Catalog file), the system will require you to identify the serial numbers of the items being depreciated.  These Serial records are marked as deleted, and new Serial records are created for the “new” or depreciated item  (the serial records are converted), and Serial History records are written to record the changes.

The Bin records for the original and depreciated items are also updated as required, and waretran records are written to record the Bin movement.


Depreciating In House Stock

Return to Depreciated Stock (RA)

Return to Inventory from Pending