When an Order is submitted, the system commits inventory on
a first come basis. I.e. it commits
inventory in the order that Orders are submitted. It tracks committed quantities in the Inventory.QtyCommitted
field. As soon as the quantity committed
exceeds the quantity available, the system places all additional order
quantities for an Item in its Inventory.QtyCommittedBO field. When Inventory is
updated (received), it is added to the quantity on hand,
Inventory.QtyOnHand. Once the quantity
on hand (Inventory.QtyOnHand) exceeds the quantity committed (Inventory.QtyCommitted
+ Inventory.QtyCommittedBO), the system will once again show availability for
the Item.
Between the time an order is placed and the time it is
fulfilled, additional inventory quantities can be received; thus, the
fulfillment process is used to determine the quantities available for
fulfilling an Order’s backorder Items.
Also, during fulfillment it is possible that Inventory that should be
available according to the system is actually not available; i.e. the value for
Inventory.QtyOnHand could be incorrect.
This can be due to many reasons including theft, breakage, data entry
errors, misplaced inventory, and manual fulfillment of an Order that has not
been entered into the system. Consequently
the system must be able to accommodate and track each of these conditions. Theft, breakage (damaged inventory), and data
entry errors are usually accounted for by entering adjustments. Adjustments correct the Inventory.QtyOnHand
and they record the correction in the GLEntries table. The field Inventory.QtyAdjusted is used to
track this. The Inventory Adjustments feature
is used to enter adjustments. The Inventory Entry feature is used to enter
quantities received from vendors.
Only the Invoiced (Shipped) portion of an Order can be
posted, thus orders are posted when InvTrxs are completed. InvTrxs are completed when the product or
service has been fulfilled and shipped.
Thus Product Orders are normally posted when the Product is
shipped to the customer and Event Orders are normally posted after the Event
has been completed, which is usually the next business day after date of event.
Regardless of when an Order is posted, only the Invoice amounts are
posted. The TMS is responsible for
determining and creating the Invoice amounts (see Part 1 of this specification).
When an Invoice is posted the system creates the following
entries:
o
Debit Accounts Receivable account for total
invoice amount.
o
Credit specified Revenue account for each Item
for the Item invoice amount.
o
Credit Sales Tax Revenue account for total
invoice sales tax amount.
o
Credit Shipping Revenue account for total
invoice shipping amount.
When an Order is fulfilled, for each Item fulfilled/shipped:
o
Debit Cost of Goods Sold account for cost of
Item(s).
o
Credit Inventory account for cost of Item(s).
When a Payment is posted the system creates the following
entries:
o
Debit the specified Cash account for the total
amount of payment.
o
Credit Payment Deposits account for the total
amount of payment.
When Payment Distributions are posted the system creates the
following entries:
o
Debit the Payment Deposits account for the total
amount distributed.
o
Credit Accounts Receivable account for the total
amount distributed.
