The receipt of inventory items from an external vendor is recorded in the Purchasing module. When an item receipt is processed, the system locates the group account established for that item. To reflect the increase in inventory quantities, the NCAS generates an accounting entry to increase the inventory asset account in that group account. The Inventory asset account (event ID A010) is debited and the Reserve for Inventory account (event ID A020) is credited for the transaction amount. (Refer to the Receipt transaction in the Accounting Activities Table.) The transaction amount is the quantity received multiplied by the PO unit price.

If the on-hand quantity at the time of the receipt is less than zero, the NCAS will generate an additional adjusting entry to ensure that the general ledger asset value matches the system-maintained on-hand values. The accounts affected by the adjustment would be the Inventory asset (event ID A010) and the Inventory Adjustment account (event ID A090). The adjusting entry for negative on-hand quantities was explained earlier under Average Cost Processing.

The general ledger effective date for posting inventory transactions is the system date when the transaction was processed. For receipts, the date that the receipt is recorded in the NCAS is used by the system as the GL effective date. However, if a receipt is put on hold, the GL effective date is the date that the receipt is released. If the receipt has an exception, the GL effective date is the date that the receipt exception is authorized.

To locate the accounting entry generated by the system for a receipt, refer to the Valued Transaction Register by Warehouse Report (RVTRW).

The Valued Transaction Register by Warehouse Report (RVTRW) is located in RMDS in the report group IN261-1. For more information on accessing RMDS reports, refer to Viewing and Printing RMDS Reports.

In the Inventory module, the on-order quantity decreases and the on-hand quantity increases by the quantity received.

For example, all 10 tubes of antiseptic burn ointment were received at the warehouse and recorded in the system yesterday. The receipt was processed without any problems. The NCAS first located the group account XXMEDICAL, which is the group account for antiseptic burn ointment. Using event IDs A010 and A020 (refer to the Receipt transaction in the Accounting Activities Table), the NCAS generated the following accounting entry within XXMEDICAL:
 
 

	Debit	Credit
Inventory (XXMEDICAL)	20.00
Reserve for inventory (XXMEDICAL)		20.00

 

Note that the transaction amount for this entry was calculated using the PO unit price of $2 per tube. In other words, the transaction amount equals the quantity ordered (10 tubes) multiplied by the PO unit price ($2 per tube) at the time of the receipt.

Note: If the buyer changes the PO unit price, the change does not affect the transaction amounts for receipts recorded prior to the change.

In the Inventory module, the on-hand quantity for the item will increase by 10 tubes. The on-order quantity will decrease by 10 tubes.