Adding Location to Journal Voucher

I was doing some adjustment through Journal Voucher I found there is no possibility to choose the location. now we have discrepancy in the inventory report, some items not located to inventory location.

is there anyone who face this problem

Exactly what “adjustment” are you trying to make? There may be a different approach than a journal entry that you are intended to use.

@Tut
Iam trying to make adjustments to increase and decrease the inventory items as per the actual

Decreasing inventory could be done through inventory write off

I have two locations

Looking forward to add location option in the Journal Voucher

This is the correct approach. It allows locations to be specified.

Unfortunately, there is no corresponding option for inventory write-ons (additions). And if you want to use a journal entry, you have to enter accounts for each debit or credit. Yet locations are not accounts. Nor are they first-tier subsidiary ledgers. So the program structure would have to be modified to allow multi-level subsidiary ledger selection.

The real solution is to change the tab to Inventory Adjustments and allow both positive and negative adjustments. This has been in the Ideas category for more than a year: Inventory Write-off tab modifications.

Meanwhile, the only way to handle excess inventory (not purchased) is to make the journal entry as you now are, then enter an inventory transfer from Unspecified to the location where you found the extra stock.

Thanks for your suggestion

There should be an option for location in Journal Voucher same as cash and bank

It is really double of work in the meantime repeat the same in two tabs

I hope @lubos will have a look into this and add it

@lubos, Good Day!
It’s almost 4 months this topic was last raised. Since then, I noticed this topic was not discussed/raised in this forum. Therefore, I would like to raise this topic to underline the importance/necessity of this much awaited feature.

In my import business, we open account in assets for each L/C opened for import of goods. All the related expenses are input under those heads (L/C account). Finally, when the goods arrive at our warehouse, we use journal voucher to offset the balance in L/C account by credit in L/C account and debit inventory items (per item cost*quantity is equal to total balance in related L/C account) which would make the L/C Account balance as zero. So far so good. But, we can’t choose inventory location. Due to this, all the entered inventory items would show up in unspecified location. Then, we need to create goods receipt for all the items & corresponding quantity (as would appear in unspecified location*) keep “supplier box blank”, re-enter all inventory items and quantity as in journal voucher, then choose inventory location before creating. With this work around, the items from unspecified location are moved into desired inventory location (warehouse). All works perfectly.

However, all this fuss of extra work could be avoided if a journal voucher had the option of inventory location

May I draw the attention of @lubos who, I’m sure would realise the importance of this feature, to add inventory location in journal voucher on a priority basis.

An inventory transfer tool has been available for a long time.
Click the Customize button under the tabs/modules and activate the Inventory Transfers module.

You can now easily do inventory journals smoothly between two locations.

Create a location called goods in Transit where you will enter all your owned inventory in Transit. When they arrive, receive them into your locations with an inventory transfers entry.

Manager has a feature which let users easily charge carriage inwards cost (freights, import duty, etc) to inventory. I can’t show you right now but it very simple and got to do with the freight in item which automatically becomes active when an inventory item is created in manager.

It is found among where items are selected Items for voucher or transactions.

@Abeiku, sir your suggestion is not workable in our situation but, anyway,thanks for your suggestion and time you spared for your helping tip.

About your suggestion of using inventory transfer tab, it’s already activated in our system. We are well conversant with its use and already using for internal transfer between our existing 5(five) warehouses. Regarding your mention of a feature of carriage inwards cost, it is solely a freight/transport related issue and does not have any bearing in our case.

We shall ask you to kindly read our post again. Let me explain you our workflow.

  1. Upon confirmation of an order by a supplier (usually in a foreign country), we need to open L/C to them.

  2. In next step, when the L/C is opened, we create an account under ASSETS with L/C number & our P/O number.

  3. From the time the goods are shipped and arrive in our warehouse, we enter all recurring expenses (everything-cost, freight, duty, local transport, etc) under this head.

  4. Once the goods are received at our warehouse, we have to receive the goods at its cost. Just receiving the goods by its quantity in a transit warehouse would be meaningless (per your suggestion) unless the cost is included too. So, we compute the cost of inventory items (divide the total balance under that L/C head by the quantity of inventory items) then make a journal voucher. We credit the head (account) related to this inventory items and debit the inventory item indicating quantity and cost equal to the balance of the subject head (account) thus making the balance zero.

  5. As I mentioned, so far so good. But, after creating the journal voucher, the inventory items with its quantity will then appear in the unspecified location for which we need to make goods receipt again (keep the supplier box/column blank and identify inventory location where the goods are received). This would remove the goods from unspecified location. All are perfect.

  6. Finally, as we requested in our earlier post, if inventory location is available in journal voucher then we don’t need to go into hassle to make goods receipt and all… like mentioned in step “5” above.

Hope your understanding is now clear for our situation.

@lubos, needs your attention too.

Before I read further, please explain L/C. Don’t assume I know

L/C = Letter of Credit

A letter of credit ( LC ), also known as a documentary credit or bankers commercial credit , is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods. A letter of credit is extremely common within international trade and goods delivery, where the reliability of contracting parties cannot be readily and easily determined. Its economic effect is to introduce a bank as underwriting the credit risk of the buyer paying the seller for goods.(https://en.wikipedia.org/wiki/Letter_of_credit#cite_note-1)

I don’t know enough about accounting for Letters of Credit to understand why it is treated in the way that sonicgroup explains

@Joe91, exactly…:+1::+1: perfect. That’s what I’m referring to by L/C. @Abeiku, will I be correct if I assume that you are not involved in import business.

L/C is not treated in any other way other than when we open L/C , we use the number to open account head in our system to track this order and also input of all expenses incurred relating to this transaction. Finally, when the goods are received in our warehouse, we can get the cost of product/products from the account head balance.

I am not sure my case is similar to all others, but I would also like to have locations in the Journal Entries. I am moving some stock from Inventory on stock to a new account we call Inventory for Demonstrations, basically stock that we “cost” to the company and we cannot sell after we use them. When I do this, Manager takes the quantity of items indicated away from the inventory on hand, but these items remain as from unspecified location instead of the real location of the items.

@mauroskov, it is not clear exactly what you are doing. But, if you are recording the dedication of inventory items for demonstration purposes as an expense, they can no longer be considered as assets. This is reinforced by your statement that you “cannot sell after we use them.”

Such a non-revenue reduction of inventory is a write-off and should be recorded in the Inventory Write-offs tab, not with journal entries. Inventory locations do not come into play, except for the source of the write-off, because they are designed only to record location of items remaining as inventory assets. (Inventory includes only goods held for production or sale.)

There might be circumstances where expensive demonstration items are transferred and held as fixed assets, but that is a separate subject. The point is that, if you can no longer sell an item, it is no longer inventory and cannot be—from an accounting perspective—held in an inventory location, regardless of its physical storage spot.

Based on conversations with our auditor here in Rwanda, we have to transfer some items (glasses, pumps, etc.) from our Inventory on Hand to assets and then depreciate them 50% annually. The items could still be sold at a lower price, but that is not the main point (we will not do so). The point is that I have to take out from the Inventory on Hand some items and make them appear as assets because writing them off 100% is not really allowed by local legislation.

So, @mauroskov, your situation falls into the category I mentioned in the final paragraph of my previous post. This means you should not write off the inventory to an expense account. You should, instead, write it off to Fixed assets.

The first step is to create fixed assets in the Fixed Assets tab for those demonstration items. Then, use an inventory write-off to transfer them to the Fixed assets account. Finally, enter appropriate depreciation for them each accounting period.

Our discussion has strayed far from the subject of this thread. But the fact remains: your situation is not justification for needing inventory locations in journal entries, because you will not use journal entries for these transactions.

Great, this is much clearer now. Thanks

Added to the latest version (19.9.37)

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