Production Order Items Return

1

Hi, hopefully i did not ask the same question posted before. How to I return any inventory item quantity that is not used in the production order? For example:
Production Order
Item A: 5 pcs
Item B: 10 pcs
Item C: 2 pcs
In fact, for example Item A only used 3 pcs, how do I return the other 2 pcs to my inventory? So that I can make a Purchase Return (Debit Note) in the future?

Thank you

2

From a purely functional perspective, you have two possible approaches:

  • Edit the production order to record inventory actually used for the bill of materials
  • Use a journal entry to write on (add back) the unused inventory item (See Write on inventory | Manager)

Which you use will depend on:

  • Whether the accounting period has been closed yet
  • Whether inventory reports have already been produced and distributed (probably related to the point above)
  • Legal and accounting standards in your jurisdiction concerning modification of accounting transactions
  • Internal workflow practices (such as where the production order has been distributed)
3

ah, so it should not use Good Receipt. I tried it, and the qty owned messed up.

Noted. Thank you Tut

4

No, goods receipts complete a purchase activity. They place the quantity of an inventory item purchased into inventory.

5

So I finally use Journal Entry to return back the unused items, and make Debit Note for them. But why the quantity to receive and on hand are not 0?

image

6

Because you have the Goods Receipts tab enabled, but did not enter a negative goods receipt to complete the debit note’s transfer of goods.

If you have not, you should read the three-part Guide on inventory management. Part 2 discusses goods receipts and includes a Note specifically covering this issue. See Manage inventory - Part 2 Continuation | Manager.

If you are not going to use the Goods Receipts tab, you should disable it. Once it is enabled, it must be used for every purchase and return of inventory items.

7

ah, ok, so the conclusion, as long as i use the Goods Receipts, whenever there is Debit Note created, i need to edit the Goods Receipts accordingly. Noted! thank you so much

8

Not edit one, but create one to correspond to the debit note.