SO Generate Invoices and Indent Items

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If an item is identified as an indent item, the item is ordered specifically to satisfy a customer order.

When the Purchase Order Linking module is in use, and a purchase order for an indent item is linked to a sales order line, an option is available for the cost of sales value to be calculated from the linked purchase order (actual cost) instead of from the IN Cost Maintenance form.

To apply this function:

PO Module Control

Select the Indent items use PO receipt costs on SO Packing Slips/AR Invoices option in PO Module Control to use the function for SO-PO linking for indent items. This option is enabled if the Purchase Order Linking module is in use.

This option determines the system action when inventory associated with backordered (linked) sales order lines is received using the PO Receipt or PO Shipment Entry forms.

PO Receipt/PO Shipment Entry

If the PO Module Control option outlined above is not selected, receipt transactions for linked indent items process using the item's system cost (for example, average, standard).

If the PO Module Control option outlined above is selected, this occurs when a receipt transaction is processed:

• If packing slips are in use, the actual purchase cost entered into the PO receipt line for the indent item defaults to the packing slip line cost. The Hold Cost checkbox is selected. The GP% and GP value on the packing slip will be recalculated using the updated cost.

  If: There is a variance between the receipt cost and the inventory item's system cost, the value posts to the COS Variance account specified in General Ledger Module Control when the receipt transaction is saved. The packing slip line already had hold cost set to true (when the sales order was entered), then this is the cost used when the invoice is generated.

• If packing slips are not in use, no packing slip generates.

SO Generate Invoices

When the AR invoice is generated for an SO-PO linked indent item, the actual cost is the cost of sale, except where the Hold Cost option was selected for the sales order line when it was entered.

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