Nonstock and Direct Order adjustments

Nonstock and Direct Order (DO) transactions that require correction or adjustments usually occur because they were processed incorrectly. These are some examples of transactions that you can correct:

Nonstock or direct order items were received at one quantity and costed at another quantity.
The customer accepted a smaller quantity than originally ordered, and you must move the remaining quantity to stock inventory.
The customer returned the DO product, and you returned it to inventory instead of returning it to the vendor.
Due to a rounding difference, the set contains a small balance that needs to be written off so it can be closed.

Use Product Adjust Non-stock/Direct Order Entry to make quantity or, in the case of nonstocks, bin location corrections. Bin locations apply to non-TWL warehouse only. You can adjust the quantity if the quantity received is not the quantity billed, or if there are damaged goods. You can adjust the amount if there is a difference between the received cost and the AP cost.

You can also make adjustments to move nonstock inventory to regular stock inventory. You can use Product Adjust Non-stock/Direct Order Entry to make these inventory adjustments:

Use the Inventory function to move a single nonstock product to stock inventory, creating a Product Setup and Product Warehouse Product Setup record. The nonstock record must be active with quantity available to sell.

Use the Mass Update function to move multiple nonstock products to a single Product Setup and Product Warehouse Product Setup record.
Use either the Inventory or Mass Update function to convert a nonstock product to an Order-as-needed-Nonstock (OAN-NS).

Adjustments to direct order products do not affect usage because the product is not being sold from your warehouse.

Use these functions to make adjustments to nonstock and direct order transaction sets:

Use Adjust to adjust the quantity or amount of a transaction. To reduce the quantity, type a negative sign and the quantity in the Quantity field. The appropriate inventory account is offset with the Physical Adjustments account when you close the journal.
You cannot close a set if there is a discrepancy in the set. Use Write Off to clear positive or negative differences for nonstock and direct orders. The amount that you specify is debited or credited from the inventory account that associated with the transaction. Select the offset account from the General Ledger window. The Cost of Goods Adjustment account initially defaults, but you can select another account. If the original unit does not equal the unit that was entered, you can also use this function to adjust the unit discrepancy.
Use Inventory to remove quantities from the set and place it in your regular inventory. This function creates new product records and potentially closes the set.
Use Mass Update to move multiple nonstock products into your regular inventory. After all quantities of a nonstock are moved to stocked inventory, the update process closes the nonstock set (ICENH/ICENL) by changing it to an inactive status. During Mass Update, you can make changes to the product name, description, product category, status, bin location, vendor and product line.

If a Product Setup record does not exist, one is created with the unit of measure defaulting as the stocking unit.

If the product is a nonstock and a Product Warehouse Product Setup record does not exist, you must specify a vendor and product line. The default ordering information from the corresponding Product Line Setup record is then used to create the Product Warehouse Product Setup record, and the status defaults to order-as-needed but can be changed.

If you use FIFO to update the General Ledger and convert a nonstock or direct item to a stocked item, FIFO layers are created using the actual cost of the items.

If you move a direct order product into your inventory, the replacement cost and date of the last receipt is not updated.

Nonstock sets remain open and active as long as there are quantities on the set. If a tied order is still open and has not been invoiced, then the set is not inactivated and closed. It only closes a set when the amount and quantity that are calculated on the set are zero.

Note: Sets may remain open even after the total quantity ordered is received in full. This sometimes occurs due to rounding differences when the AP invoice is processed. These rounding differences can be found by running the Product Non-stock/Direct Order Report and selecting Z for the NS A)vl T)ied Z)ero B)oth Avl/Tied X)All option. This prints zero quantity nonstock sets with a value remaining. You can then write off the differences.

Nonstock and direct order products contain a tie between the sales order and the purchase order or warehouse transfer. If you make a change to the quantity on a purchase order or warehouse transfer, the change flows back to the source document as long as the option in the Over Fill Order Qty With Receipt Qty section in SA Administrator Options-Products-Defaults is selected. For example, if you change the quantity received in Purchase Receipt of Inventory Entry or Transfer Receipt of Inventory Entry from 10 to 15, the sales order reflects a quantity of 15. The same applies to cost.