Sales Invoicing - Using Sale of Stock

• Sales Prices and Account
• Defining Price Types for Customers and Documents
• Selling and Returning Stock
• • The Impact of ICA
  • GL Postings for Stock Sales

Sales Prices and Accounts

In order to use Sales Invoicing to provide sale of stock features, you need to set up items as described earlier in this section with appropriate prices. Sales prices are distinct from Purchase prices and will always be used for items sold through Sales Invoicing.

You can also provide a default sales account for items that are to be used in Sales Invoicing. This account will be defaulted through to the document line on entry, but can be over-typed.

Remember that to be used for stock recording in this way, the item must be defined as a stock item and have a valid default store.

Defining Price Types for Customers and Documents

Price types are used to allow the system to determine the price that will be used when you enter an item on a document. You can set up a flexible pricing structure for customers and types of sale by providing a default price type at the Customer and Document levels. These price types will override the default price type hierarchy set up earlier. The order of precedence is:-

Document -> Customer -> Default Price Types (1 to 5).

This allows you to set up a set of base prices (the default price types) and to have these overridden for a specific customer with whom you may have a special set of prices agreed. Over this you can then provide a 'set' price for specific sale types governed by the document code.

At the document level, you can also set the Auto Create MIV flag which allows the system to generate a Materials Issue Voucher for any stock items sold against that document code.

Selling and Returning Stock

When you create an SI document for a Stock item (i.e. Store code defined against the item), a Material Issue Voucher (MIV) will be automatically generated within IM to record that an “over the counter” sale of stock has occurred. The MIV voucher will only be triggered when the document has been authorised, printed and sent to AR. This will apply to all normal, cash invoices and inter-departmental documents.

The system will check the stock levels at the time you create the document, and if there is insufficient stock on the system for the sale, then you will not be allowed to proceed. The system will also check that the store held against the document actually stocks the items requested. Note, that this stock check will also apply when a stock-related line is generated from a stock code held against a contract line.

Once you have updated the document, then the stock is assumed to have been sold. However, the system will not update the stock in IM until the document has been approved and printed. For this reason you should avoid doing a stock check until all active SI documents have been printed.

When you need to return stock, you must issue a credit note. The system will then process this in the same manner as a sales document, but will generate a Return to Store voucher within IM to record the return of the goods. Note that if you wish to simply issue a credit, not actually return the goods, then you must use a document type that is not flagged for 'MIV Auto Creation'.

The Impact of ICA

In an ICA environment, the system will request that an ICA element is provided for the document. When you do this, the system will also check that the Store entered for stock is either in the same ICA element or has a trading relationship established with it. You cannot use a store that does not trade with the ICA element against which the document is issued.

GL Postings for Stock Sales

When you use SI to record sales of stock, the system makes a number of GL postings to record the fact in the relevant areas. Consider the following example:

An Item is sold with a price of £117.50 with a standard inclusive Vat rate of 17.5%. Assume that standard pricing is in use for IM and that this is £95 for the item.

The following GL Postings in IM should occur, the GL Accounts will be retrieved from the default account code held on the store (screen MHAH):

The following GL Postings in SI/AR should occur, the Income account will be that entered on the document line (or defaulted from the item sale account):

See also

Sales Invoicing Maintaining Items and Prices

Sales Invoicing Home Page

Inventory Management Home Page