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a) Case 1- When the Quantity and cost amount in the reservation document are negative. The stock report shows a higher value of available quantity due to a negative reserve value.
for the below example, the actual quantity available is 100 but due to an incorrect sequence of posting, the negative reserved value increases to 110.
This happens when users create an Inventory reserve cancellation document from a Customer order and then an Invoice is created from the same Customer order, but later the user manually changes the date of the Invoice, bringing it before the inventory cancellation document date. Making the sequence look like this-
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To solve this, you should delete the Inventory reserve cancellation document since the reserve will be offset with the Invoice document.
This will be the actual stock report after the deletion of the Inventory reverse document
Case 2- An Inventory item is not included in the Customer order but appears in the Inventory reservation document and Inventory reserve report.
It's possible that the item was first added to the Customer Order (CO), then an Inventory reserve document was generated from the CO, and subsequently, the user deleted the item from the CO. The Customer Order (CO) is closed because the added item has already been sold, yet the reserved item remains stuck.
For example, the stock balance indicates there are 100 units available, but in reality, there are 200 units. The almond oil was initially added to the Customer Order (CO) and later removed because the customer no longer needed it, but it remains reserved in the inventory.
To solve this, create an Inventory reserve cancellation document from the CO document using the Generate option. This will help to remove the reservation
Case 3- Only value in cost amount, negative amount, or positive
This situation arises when the cost price at the time of Inventory reserve differs from when an Inventory cancellation document is generated.
For instance, an Inventory reserve was created when the cost price was AED 10. Later, a new purchase was made, raising the cost price to AED 13. This reserve item was no longer needed in the Customer Order (CO), there the reserve was canceled using the Inventory reserve cancellation document, resulting in a negative value in the reserve report due to the cost-price difference.
Since this negative cost amount does not impact the actual cost price of the item, but only affects the Inventory reserve register, we can remove this value using a register corrections document.
Go to Administration > Register correction document > Click on the Create option
You can copy the details from the Inventory reserve (cancel), and add the same amount AED -300 from the reserve report.
Or you can record it with a register record as Receipt and keep the amount in positive, this should remove the negative cost value.
Case 4- The inventory item was reserved against CO and completely Invoiced, yet the balance appears in the inventory reserve report and the difference in the stock balance report
It is possible, that items are reserved from a warehouse that has this functionality enabled i.e. separate inventory and financial documents, this requires the creation of an Invoice and Goods dispatch note to complete the transaction. This sequence should be maintained i.e. CO > Inventory reserve >[either (Invoice > Goods dispatch note) or (Goods dispatch note> Invoice)]
The solution is to create a Goods Dispatch Note using the generate option from the Customer Order. This action completes the transaction effectively.
Additional notes-
Reservations can be removed/canceled by following documents:
- Inventory Reserves (cancel reserve type of transaction)
- Invoice
- Goods Dispatch Note
The reports in the Warehouses module provide detailed information on reservations made in the company warehouses. To view reservations, you can use the following reports:
- Inventory Reserves
- Stock Balances by Item
- Stock Balances by Warehouse
- Stock Balances with Locations
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