Overview

When the system is configured to automatically post inventory receipts to the General Ledger and the operator presses the save key in the Receiving program, the system does the following.

•      The Invtran number (unique number assigned to the Inventory Activity record for the transaction in file 91) assigned to the receipt is passed from the receiving program to the inventory posting program.

•      The posting program checks the transaction to make sure it is not already posted and displays an error and halts processing of the transaction if it is already posted.  The system determines if the transaction is posted or not based on the Journal entry field in the Inventory Activity record.  The JE field is updated with the journal entry number used to post the transaction.

•      The posting program checks the information in the transaction to make sure that the information required for posting is present.  If a problem is found, the program displays an error message to warn the operator and it may abort.

•      The posting program creates a journal entry for the stocking items being received.  Nonstock items are not posted if received into inventory as they are not included in the Inventory, WIP and Pending valuation reports.  The journal entry for the receipt is created in the division specified in the invtran record and department 1 (balance sheet accounts are posted to in department 1).  The period and the year used in the journal entry are based on the operator year and period used in the receiving program.  The journal entry contains one line for each inventory item being received.  Each of these inventory lines store the inventory control account defined for the item based on the product line that the item is assigned to.  The amount of the je lines to the inventory account are based on the extended cost of each item being received.  The JE created by the inventory posting program also includes a line which is posted to the inventory liability account (autopost 340).  This JE line has an amount equal to the total of all of the postings to the inventory control accounts.  All of the  JE lines store the invtran number of the transaction being posted in the Reference Number field  and "INVR POST" in the Memo field.  The source of each JE line is "IP".

•      Once the je is created by the inventory posting program it is handed to the standard journal entry posting routine and this routine updates the appropriate general ledger accounts if there are no problems with the JE.  If the JE is out of balance or if the accpers for the accounts are not present, the journal entry posting routine will not post the entry and it will display an error message so that the situation can be corrected.

More:

Recreating the automatic posting