When you post a transaction where items are moved in or out of
inventory, the program creates item
applications. The item applications link an inventory increase
to an inventory decrease. These applications determine the flow of
costs from the goods that are received in inventory to the cost of
goods going out of inventory. Because of the way the unit cost is
calculated, an incorrect item application can lead to a skewed
average cost and skewed unit cost.
You might need to undo an application and/or reapply item ledger
entries for a variety of reasons:
You have forgotten to make a fixed application.
You have made an incorrect fixed application.
You need to return an item to which a sale has already been
applied.
Whenever possible, use a document to make a reapplication. For
instance, if you need to make a purchase return of an item to which
a sale has already been applied, you can make the reapplication by
simply creating and posting the purchase return document with the
correct application in the Appl.-to
Item Entry field on the purchase return line. You can use
the Get Posted Document Lines to Reverse
function or the Copy Document function in the
purchase return document to make this easier. When you post the
document, the program makes the reapplication of the item ledger
entry automatically.
If it is not possible to use a document to make a reapplication,
such as when you need to correct a fixed application, use the
Application Worksheet to make a
correction to an application only when necessary.
Removing an Item Application with the Application
Worksheet
Select the item ledger entry for which you want to change the
application.
To make it easier to find the item ledger entries you need,
enter filters in the filter fields at the top of the window.
When you have selected the item ledger entry, click View,
Applied Entries. The Application
Worksheet - Applied Entries window opens to show the item
ledger entrie(s) that are currently applied to the selected
entry.
Select the item ledger entry for which you want to remove the
application.
Click Remove App. This
removes the item application entry that links the two item ledger
entries and moves it to the Item Application
Entry History table.
The Remaining Quantity
fields of the two item ledger entries are increased by the quantity
that has been un-applied. The removed item ledger entry is now
available for reapplication, either from the Application Worksheet window or from
the Application Worksheet -
Unapplied Entries window. See below.
Creating an Item Application with the Application
Worksheet
To reapply entries removed since the worksheet was opened,
select the item ledger entry that you would like to reapply and
then click Functions, Reapply. This reapplication to the original
balance also happens automatically when you close the Application Worksheet window.
To apply an available open item ledger entry to another entry,
select the item ledger entry that you would like to apply and then
click View, Entries to Apply. The
Application Worksheet - Unapplied Entries window opens.
Select one or more item ledger entries that you would like to
apply to the entry selected in the Application Worksheet window, and then
click OK. The program creates an item
application entry between the two item ledger entries. The
Remaining Quantity fields of
the two entries are reduced by the applied quantity.
Note: In certain rare situations, the program does not make the
application that you are proposing. This is when you have
unknowingly chosen to make an application that would create an
infinite loop in the cost adjustment process. This is usually in
cases where the original entries created negative stock. The
program does not make the application, so you must select a
different entry for the application.
If in the inventory setup, the Automatic Cost Adjustment field is set to
Always, the program
automatically runs the cost adjustment batch job after you make a
reapplication. Otherwise, run the Adjust Cost -
Item Entries batch job to ensure that all costs are up
to date.
Note
The following are important considerations to
keep in mind when working with the application worksheet:
It is recommended to only reapplying item
entries during non-working hours to avoid any conflicts with other
users posting transactions with the same items.
When you close the application worksheet, the
program performs a check to ensure that all entries are applied.
For example, if you remove a quantity application but do not create
a new application, and then you close the application worksheet,
the program will create a new application, if possible. This helps
keep the cost intact. Please note, however, that if you remove a
fixed application, the program will not automatically create a new
fixed application when you close the worksheet. You must do this
manually by creating a new application in the worksheet.
It is possible to remove applications from
more than one entry at a time in the application worksheet.
However, because applying entries affects the set of entries
available for application, it is not possible to create an
application for more than one entry at a time.
The application worksheet is not able to make
an application in the following situation: If there is not enough
quantity on stock to apply, the application worksheet is not able
to make an application when you are trying to apply an inventory
decrease entry without item tracking information to an inventory
increase entry with item tracking information.
Application Worksheet.
The worksheet shows all item ledger entries.