With a direct issue, the asset and expense accounts are impacted in the same way as a usage order issue. (Refer to the Order Shipment/Direct Issues (Intracompany) transaction in the Accounting Activities Table.) Funds are also checked for direct issues. The key difference between a direct issue and a usage order issue is that funds are not encumbered for a direct issue because an online request for the items is not submitted to the warehouse. Therefore, for direct issues, funds exceptions cannot be passed to the Budgetary Control Exception Queue (BCQ) screen for resolution.
For example, your warehouse
directly issued one tube of ointment to a customer at an issuing cost of
$2.31 per tube. The average cost of the item is $2.20 per tube and the
storage overhead is $0.11 per tube. No funds are encumbered for this transaction.
The accounting entries generated for this transaction are:
|
|
|
|
| Reserve for Inventory (XXMEDICAL) |
2.31
|
|
| Inventory (XXMEDICAL) |
2.20
|
|
| Storage Overhead (XXMEDICAL) |
0.11
|
|
| Usage Expense (XXMEDICAL) |
2.31
|
|
| Expense Offset (XXMEDICAL) |
2.31
|