Application of the freight charges or discount across the items on the invoice on a weighted average (which will adjust the average cost of the items on the invoice), using an inventory item established with the assistance of Aurora Information Systems.
On an existing invoice, enter the item number for the Freight Adj or Discount Adj.
Enter the Dollar amount of the Freight Charge, then 0 = END.
The Invoice is closed because the average costs of the items on the invoice have been recalculated based on the adjustment amount. Any additions or modifications to the purchased items on the invoice would skew the average costs and not leave an audit trail.
Upon exiting the invoice, the average cost of items 6576 and 6577 are increased due to the freight adjustment. The cost of purchases on the Warehouse location cost summary will be increased by the total amount of this invoice for the cost category or categories that 6576 and 6577 are assigned to. The system then verifies the total.
Answer yes to the prompt to verify that the invoice total is correct.
In the next example, the Freight Charge is in excess of the amount to be applied. Note that $7.1560 was not applied to average cost of some or all of the items on the invoice. This unapplied amount prevents the average cost of the items on the invoice changing by a percentage greater than the price warning percentage set in Global Location Maintenance for the Warehouse location.
Write down the unapplied amount, as it will need to be recorded elsewhere.
?=LIST will provide you with a list of items on the invoice in which the average cost would have been changed greater than the defined warning percentage. This feature is especially helpful in the instance where the invoice may contain multiple items and it is not readily determined which items have sufficient quantity available in the warehouse inventory file. Average cost takes into consideration not only the quantity on this invoice, but existing quantity available. The unapplied amount can be applied against these items individually on an adjusted invoice.
Enter 0 = End and the invoice will update with the correct totals, displaying the applied amount, rounded to two digits.
The system applies the adjustment on a weighted average against the items on the invoice, taking into account the invoice quantity and the quantity available in the inventory file. To prevent the instance where the average cost of any item on the invoice is changed by a percentage greater than the warning percentage set in the Location Maintenance file, the user is prompted with the amount not applied.
The user makes the decision where to record this not applied amount.
1. Add the not applied amount to a new invoice as an Unapplied Freight or Unapplied Discount item. For example, enter a new invoice with the original invoice number followed by ADJ for adjustment. This provides an audit trail for this type of unapplied amounts.
Effect on Warehouse Cost
This will cause the unapplied amount to be a separate line item on the Warehouse Location Cost Summary, thus the cost is allocated to the Warehouse as an expense.
2. Add the non-applied amount as an adjustment against an inventory item(s) on a invoice, as described on Page 1. If there is sufficient quantity on hand in the warehouse inventory, the average cost of this item will change accordingly. If there is not sufficient quantity on hand in the warehouse inventory, an error message will prompt the user, and the non-applied amount should be placed against another item(s).
Effect on Warehouse Cost
The unapplied amount will change the average cost the inventory item, and therefore will be transferred to the receiving location upon the next transfer from the warehouse. The warehouse location will not absorb the cost of the unapplied amount.
