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This blog describes how to SAP Business One Web client enables you to optimize your company inventory management in various use cases. For example when receiving items not through the regular purchasing or production processes, or when items are issued from the warehouse as samples for trade fairs or other marketing purposes. Another example is when damaged goods have to be removed from the warehouse.
The apps in the Inventory Transactions group allow you to perform various inventory transactions, including goods issues, goods receipts, and inventory counting. You can also save inventory transactions as drafts and manage documents for approval.
You can move goods in and out a warehouse by:
- Creating a goods receipt
- Creating a goods issue
- Copying goods issues to goods receipts
Goods Receipt in SAP Business One, Web Client
The goods receipt document enables you to create a transaction that increases the inventory level in cases where it is not a direct result of adding a purchasing document or production process.
When you purchase an item, and document it in SAP Business One accordingly, the warehouse inventory increases automatically. For example, if you create a goods receipt PO, the warehouse inventory increases accordingly by the specified quantity.
However, purchasing an item is not the only transaction that results in a goods receipt.
Examples
You may need to add a goods receipt if you discover during inventory counting that part of the stored quantity has not been taken into consideration. You can enter the overlooked quantity by adding a goods receipt.
Another example is when receiving a sample from a vendor for inspection as such, the item is not relevant for pricing or purchasing analysis reports You choose to receive it into the warehouse with a goods receipt document rather than with a goods receipt PO document.
Goods Issue in SAP Business One, Web Client
The goods issue document enables you to create transaction that reduces the inventory level in cases that are not directly resulting of a sales document.
After an item is sold, the warehouse inventory is automatically reduced according to the transaction you enter. For example, if you create a delivery document, the inventory in the warehouse is reduced by the specified quantity.
However, the sale of an item is not the only type of transaction that results in a goods issue.
Examples
When five units of an item suffer water damage in a warehouse, it cannot be sold and therefore should be removed. Another example is using samples for trade fair demonstrations and experiments. In such cases, you can post a separate goods issue to reflect the reduction in inventory.
Copy Goods Issues to Goods Receipts
You can copy goods issues to goods receipts in case you want to receive the items back into the warehouse, and use the Relationship Map to track the target / source document. Clicking a document in the relationship map would launch it in a new browser tab.
Goods Receipts / Goods Issues
The goods receipt and goods issue documents are very similar. Both documents require to enter the relevant warehouse. If you do not specify a warehouse, the default warehouse from the item master data record will be taken.
You can include Batch/Serial Numbers in a goods receipt\issue. Find out how to support Batch/serial numbers in the goods receipt process here or goods Issues process here
One difference between the two documents:
- Goods receipt allows you to specify the price of the item entering the warehouse.
- Goods issue, on the other hand, uses the item cost to calculate the value of the accounting transaction and the price field is only informative.
Frequently asked question about goods issues:
The goods issue shows an Info Price. The Info Price is determined by the selected Price List. and Line Total according to that price. The Document Total is the sum of the Line Totals.
why the value in the Journal Entry, does not reflect the Document Total?
The value in the Journal Entry, reflects the document total according to the Item Cost.
As long as the document is not added, the expected cost is unknown. The user can view the expected cost by selecting Journal Entry Preview (and even then, it is not 100% accurate since any transaction which will be posted before adding the document, may affect the cost).
The actual cost is stored in Inventory Audit Report.
Please note that when item valuation method is FIFO, one line can have multiple inventory transactions lines due to consuming different layers, when moving from negative to positive, etc.
