Transactions related to Inventory

Accounts Receivable xxx

Sales xxx
To record the sales made on account

Cost of Good Sold xxx

Inventory xxx
To record the cost of inventory made

Sales Return and Allowances xxx

Accounts Receivable xxx
To record the return of sales

Inventory xxx
Cost of Good Sold xxx
To record the return of Inventory

Cash xxx
Sales Discount xxx
Accounts Receivable xxx
To record the discount and cash received

Inventory xxx
Accounts Payable xxx
To record purchased of inventory on account

Inventory xxx
Cash xxx
To record the freight in of inventory

Accounts Payable xxx

Inventory xxx
To record the return of purchased inventory

Accounts Receivable
Cash
To record the freight out of inventory

Accounts Payable xxx

Inventory xxx
Cash xxx
To record the payment of inventory with discount
 Sales Return and Allowances xxx
Cash xxx
To record the return of sales

Cost of Good Sold xxx

Inventory xxx
To adjust the inventory to match with physical count

Source Documents
Supplier Invoice supports the issuance of cash, check or electronic payment to supplier

Sales invoice bill sent to a customer

Sales order initiated by customer and are prepaid

Packing slip documents describes the content of shipment. It contains separate line item for each
item shipped. It state the product number, product description, unit quantity shipped

Reserves quantities of stock items from an on-hand supply for later delivery. This
Stock Requisition
reduces the available quantity. If items are not immediately available, they may be
(SR)
backordered and later filled by having the Backorder Servicing program run.

Schedules previously reserved items to be picked up for delivery and releases them
from a reserved status. This function is performed by creating a Pick Ticket Report
Pick and Issue (PI) (IN80). From this report, the warehouse can determine the stock item, the quantity,
and the bin number of the items that are to be picked up. It also creates the
corresponding Issue Confirmation (CI) document.

Confirms to the system that previously reserved and released items have been
Stock Issue
issued from the warehouse to the buyer. The on-hand quantity of the warehouse
Confirmation (CI)
for this item is reduced by the amount issued.

Issues requested items directly from the on-hand quantity. As the items are issued
Over the Counter immediately upon request, in effect, "over-the-counter," backordering is not
(OC) allowed. Once an "Over the Counter" transaction is successfully completed, an Over
the Counter Issued Report will be produced, identifying the requestor and the stock
items issued. Any request for items unavailable for immediate issuance must be
 reserved through a Stock Requisition (SR). On-hand quantity is reduced by the
amount issued.

Allows the original buyer to return previously issued items. At the option of the
Stock Return (SN)
issuing warehouse, a return charge may be imposed.

Allows warehouse management to adjust quantities or unit values of on-hand items

Inventory
due to a change in on-hand quantities or unit costs. These adjustments alter
Adjustment (IA)
inventory and cost of goods expense balances.

Physical
Allows warehouse management to adjust quantities of on-hand items due to a
Inventory
change in on-hand quantities at a specified unit costs. These adjustments alter
Purchase Input
inventory and cost of goods expense balances.
(IP)

Stock Transfer
Initiates the transfer of items from one warehouse to another.
Issue (TI)

Stock Transfer Recognizes the receipt of transfer items by the receiving warehouse. On-hand
Receipt (TR) quantities of receiving/issuing warehouses are adjusted.