Transaction adjustments

Completed

Because the weight of inventory when it comes into a warehouse can differ from the weight of inventory when it is issued out of the warehouse, catch weight product processing must adjust the inventory.

Example 1

During production, the Report as finished quantity is packed on a pallet. The reported total weight of the finished goods on the pallet is measured as 80.1 kg. The pallet is put away to a storing location and, during the storage period, the finished goods on the pallet lose weight due to evaporation.

Later, as part of a sales order picking process, the weight of the same license plate is captured as 79.8 kg. The pallet is later picked for a sales order and, as part of this process, weighed on a scale. The difference in weight between the Report as finished status and sales picking is automatically adjusted by the system as an inventory difference.

In this case, the system automatically adjusts the difference by posting a transaction for the missing 0.3 kg.

Example 2

A catch weight item with a catch weight unit of boxes and an inventory unit of kilos has a minimum quantity of 8 and a maximum quantity of 10. The target quantity is 10. The item is set up to be tracked as a Partial visibility catch weight item.

You have two boxes of the product and they have a registered weight of 16 kg. If a warehouse worker picks and weighs one of the boxes, and the weight is captured as 9 kg, the remaining box will weigh 7 kg. However, because 7 kg is below the minimum weight, the system performs an automatic adjustment to increase the weight of the on-hand inventory by 1 kg.

To set up the accounts that these adjustments are posted to, go to Cost management > Ledger integration policies setup > Posting. Then, on the Inventory tab, define the following accounts:

  • Catch weight loss

  • Catch weight profit