Receiving Adjustments
Receiving Adjustments are really the same as purchasing adjustments except for a matter of timing. Receiving adjustments, when assigned to a vendor, are automatically applied when goods are received only, not when the purchase order is created. Otherwise, receiving and purchasing adjustment codes are nearly identical. Adjustments are not final until invoicing and may be modified prior to sale when associated with a open quote, order, or ticket (as long as the user has permission to do so). Later changes to an adjustment code do not alter the adjustment on pre-existing transactions. Basic adjustment information, such as the code, amounts, and type, are saved with each transaction and are what's used whenever that transaction is referenced by documents, other transactions, etc. in the future.
Adjustment Code: Receiving
Both Purchasing and Receiving type adjustments can be manually assigned during either Order Entry or Receiving and function exactly the same when this is done. One adjustment code of either type may be assigned to a vendor as that vendor's default adjustment code. If done, the code is automatically added either at time of order entry or receiving (based on whether it's a purchasing or receiving type adjustment). Differences between purchasing and receiving types are only noticeable in this specific case. If associated with a vendor, a "receipt" adjustment is added automatically during Receiving, but not order entry, so the purchase order would not reflect the adjustment.
Adjustment Code
Adjustment codes can be up to 12-characters in length. Codes, regardless of the category (Point of Sale, Purchasing, etc.), must be unique. The category limits the use of the adjustment, so you may have some duplication if similar codes are needed in more than one application area. Codes are typically retained with documents, even if the code is at some point deleted. For this reason, it is a good idea to make codes as descriptive as possible.
Description
The description allows for up to 30-characters to provide additional detail about the adjustment code. Descriptions are rarely (if ever) saved with transactions, so when printed on documents or reports, the description is always the current description for the code, and does not necessarily reflect the description at the time the code was actually used. When an adjustment code is removed (deleted) using the menu marker, the description will no longer be available to documents or reports. For this reason, we suggest "disabling" the code in place of deleting especially if the adjustment code has been used in the past.
Disabled
The "disabled" check box provides an alternative to deleting (removing) an adjustment code. When a code is disabled, the code won't appear in selection lists in the application areas so it can't be associated with any new transactions; however, the code's description and settings are retained for future reference and for printing/viewing on documents and reports.
This determines where the code will be available as well as sets default values for certain fields on the form. Changing the category on any existing code is strongly discouraged. If the category is modified, fields on the form are set to default settings for the category. Even if the category is then changed back, any prior entries on the form and for the selected adjustment code will be lost. If the category is accidentally modified for an existing code, it's best to first Cancel (F9) and reselect the code to reload the actual settings in this case. There are currently five (5) categories: Purchasing, Point of Sale, Manufacturing, Receiving, and Mfg Market.
There are two (2) types of adjustments: adders and discounts. Adders represent an increase when entered as a positive figure (negative amounts indicate a decrease). Discounts represent a decrease when entered as a positive figure (negative amounts indicate an increase). Some application areas and/or adder settings may prevent adders or discounts to be entered as a negative amount.
Method determines the way the adjustment's dollar amount is set. Choices include manual entry, percent of sub-total, and "per MBF/MSF." Manual Entry means that the user may be required to either specify or modify the dollar amount when the adjustment is used. Percent of Sub-total calculates the adjustment based upon a percentage specified rather than a dollar amount. "Per MBF/MSF" is used when a set dollar amount is applied on the basis of thousand board feet or thousand square feet. The "Default Amount" field is used to specify either the dollar amount or percentage for the chosen "method."
Adjustments may be pro-rated using a variety of apply options including: cost/price, footage, quantity, or weight. Relevant information must be present in the item database for certain pro-rate selections (weight factors, footage, etc.). An additional selection "do not apply" can be chosen for an adjustment used only for printing purposes (an "included" item already part of the pricing or costs of the goods). In this case, the adjustment acts more as a separate line-item and is not applied to the costs of the items being purchased. Unapplied adjustment amounts use the ledger account specified for the adjustment in place of the "inventory" asset account that would normally reflect a change in inventory value.
Purchasing and Receiving type adjustments can be assigned as the default adjustment code for a vendor. If done, the adjustment will automatically be associated with any purchase order (or receipt) created for the vendor.
Default Amount
The dollar amount or percentage to be used for calculating the adjustment.
Discountable
The discountable check box determines whether a purchasing or receiving adjustment amount should be considered eligible for discounting in Payables.
If checked, the "Do Not AP Bill" check box indicates that the adjustment is not to be associated with payables billing. This type of adjustment affects the resulting cost of the goods being received but doesn't change the amount due to be paid the vendor. If selected, the adjustment amount is reflected in the designated "Surplus Not AP Billed" account from the Receiving system mapping. Make sure your ledger mapping is complete before using this feature with any adjustments.
Purchase G/L Mapping
Set a default amount (if any) and map the cost of the adjustment to a general ledger account to complete the adjustment code.
Important! The account mapping is only used IF the adjustment is NOT being prorated across the cost of the products (the "Do Not Apply" selection). Otherwise, the adjustment amount is applied to the cost of the product and is not handled separately.