Bills Automatically Adjust Negative Items
Big Business 5.0.9 removes the qualification that an Item be Sold to get an automatic Item Adjustment to correct Cost of Goods Sold.
This Solution describes this functionality. (5971)
Big Business makes an automatic correction to Inventory Items that are Sold, that have been sold into a negative Quantity on Hand, when receiving replacement Items on Bill, when the Cost has changed. The automatic correction is an Item Adjustment for minus one unit and plus one unit that removes the Cost difference from the Inventory and posts it to the Item's Cost of Goods Sold Account (COGS).
As an example, say you buy one Widget for $1. If you set Big Business to allow sales into a negative Quantity On Hand (QOH), you could then Invoice two units, leaving an inventory of -1 QOH and $-1 Total Cost. If you then receive this unit on a Bill at $1.50, Big Business will create an Item Adjustment for $-.50 going to the Item's COGS Account, correcting the accounting results without altering existing transactions.
Big Business now makes the same correction for Inventory Items that are not Sold, using the Default Cost of Goods Sold Account listed in the Item Preferences. Items that are the components of a Built Item, for example, can be overdrawn by a Build or Auto-Build. If the Item is not Sold, it does not have its own COGS Account specified, so the Default COGS Account is used.
The Item Adjustments created are separate transactions that can be edited or deleted as needed. The Comment included on these Item Adjustments has been revised to include more information including the Invoice Number and PO Number from the Bill.
This feature supports the new Auto-Build function in allowing Builds into negative QOH when needed--the product has arrived but not been received by a Bill.
Related:
Auto-Build Items When Invoicing