Physical counting and unavailable inventory
Because unavailable inventory has an inventory subsidiary ledger and general ledger value that has not been written off, it must be included in physical counts.
For example, you have 100 engines with 75 on hand and 25 unavailable. Your GL reflects a quantity of 100. You must reconcile quantities for both available and unavailable inventory when you perform a physical count.
When you perform a physical count, unavailable inventory and available inventory are treated as two separate entities. A physical count has one entry for the total unavailable quantity on a physical count, not one entry for each unavailable reason. If you increase unavailable quantities, a new Product Unavailable Inventory Setup record is created and a unavailable reason is assigned. The system uses asterisks (**) if the reason is a valid SA Table Code Values Setup unavailable reason, or the first valid unavailable reason code found (alphabetical search). If you decrease unavailable quantities, quantities in existing Product Unavailable Inventory Setup record decrease. The system uses the same logic when decreasing quantities–asterisks (**) first, then an alphabetical search.
General Ledger
Changes to unavailable inventory require a corresponding change to the general ledger. GL Transaction Entry records are created for the change in unavailable inventory. When the unavailable inventory amount increases, the inventory control account is debited and the physical adjustment account is credited by the value of the increase.
The reference on the GL Transaction Entry record is +UN Adjust Jrnl, followed by the Product Entry Count Update Report journal number for the increase. When the unavailable inventory amount decreases, the inventory control account is credited and the physical adjustment account is debited by the value of the increase. The reference on the GL Transaction Entry record is UN Adjust Jrnl, followed by the Product Entry Count Update Report journal number for the decrease.
Serial Numbers
Product Extended Serial Number Setup records for on hand inventory are created with a status of available. Unavailable inventory has a status of unavailable. This status determines which serial products are included on the count sheet under the on hand and unavailable inventories.
Lots
When you specify a count for a lot product that is different than the expected quantity, you must specify which lots account for the difference. If the count is more, you can add the quantity to an existing Product Extended Lot Number Setup record or create a new lot record.
For unavailable lot inventory, the unavailable quantity on the selected Product Extended Lot Number Setup record is increased by the specified amount. If the counted quantity is less, the quantity is subtracted from an existing lot. The unavailable quantity cannot be greater than the unavailable lot quantity. If the unavailable amount is greater then the unavailable lot quantity, then you must apply the remaining amount to another lot with enough unavailable quantity.