Product Trial Balance of Direct Orders Report overview

Product > Reports > IC Reports > ICRTD

Function acronym: ICRTD

Use this report to compare the balance of the General Ledger Inventory account to the subsidiary valuation of the Direct Order Inventory. The subsidiary value is determined by comparing the sum of the active drop ship lines in internal direct order line item records to the General Ledger balance for Direct Order Inventory.

Note: Close all open journals before you run this report. If a journal is open, the journal number, operator, function name, date and time are included at the beginning of the report. Close the journal, and then rerun the report.

The Product Non-stock/Direct Order Report is a complementary report to the Product Trial Balance of Direct Orders Report. It includes all the active direct order inventory lines.

Any balance in the account should represent a direct order product that has been received on a purchase order but has not been invoiced. After researching the purchase order, research the associated order to determine why it was not invoiced. Additionally, check if the tie between the purchase order and sales order was broken.
Note: Direct Order Inventory is tracked through direct order header records and direct order line records. The same file is used for the Direct Order Inventory and Nonstock balancing systems. The records are identified by a D for direct order and N for nonstock records.
These values make a direct order record is unique:
  • Warehouse
  • Product number
  • Product category

If a direct order inventory product is either added to or removed from inventory, an active internal header record is created if one does not already exist. A line record is also created, and it is associated with the header record. When the direct order inventory record is inactivated, the line record is inactivated. When all lines that are associated with the header record have been inactivated, the header record is inactivated.

For example, you receive a direct order purchase order that contains product 123. Five are received at $20.00 each. The product category is 001.

This General Ledger entry is made:

DR CR
Direct Order Inventory $100.00
Uninvoiced Inventory $100.00
These direct order records are created:
  • An active internal record is created for product 123 and category 001.
  • A positive line item record is created for product 123. It includes a quantity of 5 at $20.00 each, category 001.

This General Ledger entry is made when the order is invoice processed:

DR CR
Cost of Goods Sold $100.00
Direct Order Inventory $100.00

A negative line item record is created by the Product Administration Month End Processing Report for 5 @ $20.00 and category 001. Because the lines are at a combined balance of 0, the header record is inactivated through normal processing.

Key Inventory Setup

This table shows accounts that should be set up for direct orders:

Function Account
Product General Ledger Distribution Setup Direct Order Inventory account for Balance Sheet
SA Operator Setup-Other Options Direct Order account for Inventory Control on the R&D Operator record