How to add bumper cores (or other scrap items) into stock without using a PO

Author: Steve Childs Reference Number: AA-01883 Created: 2012-05-04 16:04 Last Updated: 2014-05-14 08:02 0 Rating/ Voters

If your company buys large lots of parts that are damaged or obsolete (such as bumper cores) you may need to sort through the parts to find parts that are salvageable before receiving the items into stock.  This method of receiving items doesn't lend itself to buying and receiving items into stock with a standard Purchase Order.  The following steps explain how to receive  (and account for) and pay for the parts -- one at a time:

  • (One time) Create a new 'asset' account, similiar to the Inventory Account, called something like 'Inventory - In Transit' with a GL account close to the other Inventory account.
  • (One time) Create a Supplier account for each company or person you are paying for the goods, and set the account up as a 'Supplier' and select the 'Inventory - In transit' GL Account.
  • The person who inspects/identifies the bumper core needs to find the existing part # for the part (using F10 or Qtrl+Q) or add a new part # into the system (Ctrl+F10).  
  • After finding or adding the part, when on the Inventory Management screen, click on the In Stock tab, then click the Adjust Inventory in Stock button and enters the qty of ___ and the cost of ___ and select the Damaged check box.
  • After receiving a batch of bumpers, if you need to write a check, open the Check Writer screen and enter the Supplier name. (The Inventory - In Transit GL account should auto fill in the GL section under the check).
  • Lastly, the person who does the GL Posting needs to open the GL Batch Posting screen and click on the Inventory Adjustment tab and change the GL account from x to the Inventory - In Transit, and then posts the adjustments. (This should make the Inventory - In Transit GL account zero back out).