Inventory Budgetary Control Offline Update

The Inventory Budgetary Control Offline Update (IN-BC001) report displays the increases and decreases in encumbrances and expenses that resulted from the inventory transactions from the previous day. Funds are encumbered when a usage order is entered into the system or when a requisition is turned into a purchase order. When funds are encumbered, money is reserved for the usage order or purchase order. When the items requested on the usage order are shipped, the encumbrance is relieved and the expense account for the items is charged. In contrast, the encumbrance and expense amounts are posted in reverse for order returns.

The Inventory Budgetary Control Offline Update (IN BC001) report is organized by company. On the report, the encumbrance and expense amounts are summarized both by account and by center. The following types of transactions can appear on the Inventory Budgetary Control Offline Update (IN-BC001) report:

• Issue: the issuing of items via the Direct Issue (DI) screen

When items are issued directly, funds are not encumbered. Therefore, the ENCUMBRANCE AMOUNT field is blank. However, the appropriate expense account will be charged. A positive quantity appears in the EXPENSE AMOUNT field on the report.
• Order Ship: the issuing of inventory against a usage order

Funds are encumbered when items are requested on a usage order. When the items are shipped, the encumbered funds are relieved and the appropriate expense account is charged. Therefore, a negative quantity is displayed in the ENCUMBRANCE AMOUNT field and a positive quantity appears in the EXPENSE AMOUNT field on the report.
 
• Return: the return of items directly or against a usage order

Funds are not encumbered when items are returned; however, the appropriate expense account is credited. A negative quantity appears in the EXPENSE AMOUNT field, but nothing is displayed in the ENCUMBRANCE AMOUNT field.