Creating an Inventory Adjustment – IIA Transaction When Multiplier of a Stock Item is Not Equal to One
Process
Inventory Adjustments (IIA) are used when purchases of inventory are done on a Procurement Card or a GAX transaction. IIA adds the inventory directly into the system by using the information on item quantity and unit cost from the invoice or receipt.
To create an Inventory Adjustment (IIA) transaction, when the multiplier of a stock item does not equal one, follow the steps below:
1. The items that are being added to inventory because of a Procurement Card or GAX purchased must first be included in the inventory table (INVN). Ensure the items you are adding are on the INVN table by entering INVN in the Global search field.
2. Use the stock item fields to search for your item, and then select Search.
Note: The screenshot below is just an example; you could use any fields as needed.
3. Select the three-dot menu and then select Edit
4. The item(s) you are adding must be checked as “internally manufactured” to add the item(s) using an IIA transaction.
Select Save
After Internally Manufactured is flagged, go to UOMV table and search the item and verify the item multiplier is NOT equal to 1.
5. Once you have confirmed the item you are adding is in the INVN table and has the internally manufactured option selected, enter IIA in the Global Search field.
6. Select Create
7. Enter Department in the Dept field and Unit in the Unit field.
Select Auto Numbering
Select Continue
8. Under the Header section, on the General Information tab, enter the Transaction Name, Transaction Description, and Warehouse.
9. Select the Commodity section and select Insert New Line.
Select the + sign to insert a new line
General Information tab, enter the Stock Item, Stock Item Suffix, Inventory Location, and Location Structure.
Select Save
10. Select the Inventory Information tab of the Commodity section.
Examples of how to calculate the unit cost and quantity when dealing with a stock item that the multiplier does not equal one.
When the multiplier is not equal to one and the Smaller Unit is Issue Unit
Take the stock item 12094000000 22L as an example. The spec of the stock item is as below
Issue unit: BAG; Purchase unit: CASE; Multiplier: 10; Smaller Unit: Issue Unit
The spec above means the item is purchased by the case and sold to the customer by bag. Each case purchased contains 10 bags.
If 10 cases of 12094000000 22L are purchased for $1,000, the IIA quantity would be 10 cases * 10 =100 bags. The IIA unit cost would be $1,000/100 = $10 per bag. Shipping should be included in the shipping cost allocated by the price and amount of inventory purchased.
Select Save once Unit Cost and Quantity information is entered. Once the IIA is saved, an accounting line will be populated for the commodity line.
11. Repeat steps 9-10 for all different inventory items purchased.
12. Select the Accounting section. On the General Information tab select Event Type accordingly, and enter a Line Description. Line Amount will be auto-populated based on the Commodity line amount.
13. Complete the Funding Accounting and Detail Accounting tab. The COA (Chart of Account) on these two tabs is usually the same as the COA on procurement card purchase, GAX purchase, or warehouse COA on the WHSE page. Work with your accounting office to select the correct COA.
14. Repeat steps 12-13 for all accounting lines.
15. When the IIA is validated the first time, you might see the error “Funding Total does not equal Commodity Line Total
(A159)”. If this is the only error on IIA, validate the IIA again, and the error code A159 will be removed.
Select Save
Select Validate
Once the IIA is validated successfully,
Select Submit
16. After the IIA is approved to Final, go to the INVN table and uncheck the “internally manufactured” on the item(s).
Select Save
