Using Transaction Based Invoice Consideration —Exercises

Basic Data Setup

Site

Purpose: The purpose of this exercise is to show you how to create a site for use in the main exercise.

Windows:
Site
Sites per User

1. Open the Site window.
2. Create a site. Click on the Inventory tab. Select Standard Cost as the valuation method.
3. Click the Sites per User window, and connect the site to your user ID.  

General exercise for Site

Inventory Locations

Purpose: The purpose of this exercise is to show you how to set up inventory locations for use in the main exercise.

Windows:
Inventory Locations

1. Open the Inventory Locations window.
2. Create inventory locations of the Arrival, Quality Assurance, and Picking types.

General exercise for Entering Inventory Locations   

Create Purchased Inventory Part

Purpose: The purpose of this exercise is to create a purchased inventory part with transaction based invoice consideration.

Windows:
Part
Supplier for Purchase Part
Receive Inventory Part

1. Open the Inventory Part window.
2. Create inventory parts XX-STD-475, XX-WA-476.
3. Enter Purchased as the part type, and yourself as the planner.
4. Open the Part window, and query for the part XX-STD-475.
5. Select the Inventory Serial Tracking and After Delivery Serial Tracking check boxes. 
6. Return to the Inventory Part window, click the Inventory Part/Misc Part Info tab, and update the following cost parameters.

6. Connect the parts to a supplier, and enter the following prices in the Supplier for Purchase Part window. XX-STD-475 price = 100:-, XX-WA-476 price = 35:-. Note that the price should be set up in the company's base currency.
7. Open the Receive Inventory Part window and query for part XX-WA-476. 
8. Receive 10 units of part XX-WA-476 into a picking location. Enter 30 as the inventory value.

General exercise for Purchased Inventory Part
General exercise for Supplier for Purchase Part
General exercise for Receiving Inventory Part

Main Exercises

Purpose: The purpose of this lesson is to show you how transaction based invoice consideration works for parts set up with standard cost and cost per serial, and weighted average and cost per part. Note that all different cost levels can be used for weighted average. The exercise however describes a scenario for cost level set to cost per part.

Windows:
Purchase Order
Register Purchase Order Arrivals
Move Inventory Part
Material Requisition
Manual Supplier Invoice
Inventory Part
Inventory Transactions History

Transaction Based IC - Standard Cost and Cost per Serial

1. Open the Purchase Order window, and create a purchase order for 2 units of part XX-STD-475 price = 100. Release the order.
2. Open the Register Purchase Order Arrivals window, and register the arrival of the purchase order. Enter serial number A1 and A2 for the parts.
3. Open the Change Inventory Part Location window, and move both serials to another picking location on the same site.
4. Open the Material Requisition window, and create a new requisition. Enter one line for the XX-STD-475 with quantity 1. Reserve and issue the part with serial number A1.
5. Open the Inventory Transactions History window, and query for the part number XX-STD-475 and serial number A1. Study the transaction amounts and postings.
6. Open the Manual Supplier Invoice window, and enter a supplier invoice with a total invoice amount of 115.
7. Right -click and then click Purchasing/Match PO Receipts. In the Post from Purchase Order window, change the invoice quantity to 1 and price to 115, so that the remaining amount is zero. Click OK in the dialog box and save the invoice.
8. Go back to the Inventory Transactions History window, and query for the part number XX-STD-475 and serial number A1. Study the transaction amounts and postings. Have the values changed?
9. Open the Inventory Transactions History window, and query for the part number XX-STD-475 and serial number A2. Study the transaction amounts and postings.
10. Open the Inventory Part window. Query for part XX-STD-475, and study the values in the Cost tab (study the value of serial number A2).
11. Open the Manual Supplier Invoice window, and enter a supplier invoice with a total invoice amount of 95.
12. Right -click and then click Purchasing/Match PO Receipts. In the Post from Purchase Order window, change the invoice quantity to 1 and price to 95, so that the remaining amount is zero. Click OK in the dialog box and save the invoice.
13. Go back to the Inventory Transactions History window, and query for the part number XX-STD-475 and serial number A2. Study the transaction amounts and postings. Have the values changed?
14. Open the Inventory Part window. Query for the part XX-STD-475, and study the values in the Cost tab (study the value of the serial number A2). Have the values changed?

Transaction Based IC - Weighted Average and Cost per Part

When you start this part of the exercise, you should have 10 units of the part XX-WA-476 in stock, to a value of 30 per unit. Before the exercise starts and between every step, you should open the Inventory Part window. Query for the part XX-WA-476 and study the values in the Cost tab. This is the current weighted average for the part.

1. Open the Purchase Order window, and create a purchase order for 10 units of the part XX-WA-476, price = 40. Release the order.
2. Open the Register Purchase Order Arrivals window, and register the arrival of the purchase order.
3. Check the current WA.
4. Open the Material Requisition window, and create a new requisition. Enter one line for the XX-WA-476 with the quantity 10. Reserve and issue the complete line quantity.
5. Open the Purchase Order window, and create a purchase order for 10 units of the part XX-WA-476, price = 45. Release the order.
6. Open the Register Purchase Order Arrivals window, and register the arrival of the purchase order.
7. Check the current WA.
8. Open the Inventory Transactions History window, and query for the part number XX-WA-476. Study the transaction amounts and postings.
9. Open the Manual Supplier Invoice window, and enter a supplier invoice with a total invoice amount of 460.
10. Right -click and then click Purchasing/Match PO Receipts. In the Post from Purchase Order window, change the price to 46 per unit, so that the remaining amount is zero. Click OK in the dialog box and save the invoice.
11. Check the current WA.
12. Go back to the Inventory Transactions History window, and query for the part number XX-WA-476. Study the transaction amounts and postings. Have the values changed?