This section provides an overview of the Pending System. It describes how and when Pending records are created, it lists the various business processes that make use of the Pending system and it describes in detail the various options that can be used to process and close out Pending records.
The Pending Subledger or Pending file is used to track items that are owned by your company, but which are not located in your inventory warehouses or in your shop. Pending records are created to track items that are shipped out of the system at no charge, and which need to be returned to inventory, invoiced to a customer or vendor, or otherwise disposed of at a later date. The value of the open Pending records in your system is included in your General Ledger Inventory Balance.
Loaner Sales Orders
Pending records are created when a Loaner or Type L sales order is used to ship items out of the system. Loaner orders can be created manually, in the Sales Order Entry program, or they can be created automatically based on the type of transaction being processed. Some Loaner orders are processed using a special customer record, such as the Return to Vendor or the IFT Customer record, and other Pending transactions may be processed using “normal” customer records.
Shipper Invoice Documents
When a Loaner Type sales order is completed, the system creates a special type of invoice document, called a Shipper, to record the shipment, and a sale is not recorded. The invoice is automatically closed out as it is created, the customer is not charged for the items, and the items being invoiced are removed from inventory and records are created for them in the Pending file. The order completion process moves the value of the inventory being shipped out from the Inventory to the Pending subledger. Shipper invoices are not posted to the General Ledger as they do not reduce you inventory balance or increase your accounts receivable balance.
A Pending record is created for each line item being processed when a Loaner type sales order is completed. Pending records are created with the unique Invoice Number and Line number that is assigned to each line item on the Shipper document. Each Pending record stores the customer, item number, quantity, price and cost information from the Shipper Invoice Line. The open Pending records in your system can be used to keep track of the items you own while they are out of house. The cost of each item in the pending file is tracked in the Pending record, and a gain or loss can occur when you move an item into pending, and the cost for the item changes before it is returned to inventory.
Pending records are normally closed out or disposed of by invoicing the items to a vendor or customer, returning the Pending items to one of your inventory locations, or writing the items off to a general ledger account.