+4
Hi,
I’m not sure if I’m reading our system correctly, or if something isn’t set up properly, but here is what I found today.
We have a shipment that was created in December of 2023, but was confirmed on January 16, 2024.
The inventory register shows the issue document for the Dember period, but since the invoice for the customer will only be created in January, the Cost of Goods (COGS) and invoice will be in different months.
Here is a screenshot from the issue document.
+18
Hello
I performed some tests in my Demo. I was not able to mimic the document above, where Inventory was updated before the Shipment was Confirmed.
I tested 2022 R1 and 2023 R2. After clicking Update IN on the shipments, I was not able to set either one on Hold or to use Correct functions to update the Shipment to a not yet shipped status.
Is there any chance that a customization could have influenced the behavior? Does the User remember anything different, such as the screen freezing or an error message appearing?
Laura
+5
What was the shipment date set to? It should post based on the shipment date even if you confirmed it later.
The invoice invoice is typically configured to invoice based on the ship date so the COGS and Revenue line up. Revenue recognition is typically the ship date for GAAP.
You can have invoice's use the date you create them, for example when you have multiple shipments but want one date. However this is the kind of issue that occurs with that setup.
You control this behavior using the bill separately check box on the order or customer settings.
+4
What was the shipment date set to? It should post based on the shipment date even if you confirmed it later.
The invoice invoice is typically configured to invoice based on the ship date so the COGS and Revenue line up. Revenue recognition is typically the ship date for GAAP.
You can have invoice's use the date you create them, for example when you have multiple shipments but want one date. However this is the kind of issue that occurs with that setup.
You control this behavior using the bill separately check box on the order or customer settings.
We can’t have the invoice date before the actual ship date. Are you saying we need to update the date in order to get the cogs on the same date?
+5
What is the Shipment Date on the Shipment, not the actual ship date. The confirmation date doesn’t impact when COGS are booked. It will impact Book quantity so Physical Inventory will be correct, but it doesn’t create the issue at that point.
The Issue is created when Update IN is run (or an invoice is created) and will use Shipment Date field from the shipment for the issue date.
The invoice date is typically the same date, but it can either be defaulted to be the day you create the invoice or the shipment date.
This is common to see when the shipping department had an expected ship date, it ships late and they did not update the date on the Shipment.
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