Transaction Dates are very important when reviewing how Acctivate inventory transactions are processed. This is the behavior in Acctivate 7.0 and a significant change from prior versions, where transaction date and/or entry sequence were primarily used.
For example, the Cost of Goods Sold for a sales invoice is based on the inventory transactions on or prior to the invoice date. That’s a pretty obvious scenario, but what happens with multiple transactions are entered on the same date?
Multiple transactions entered with the same date are processed in a consistent sequence regardless of what time of day the transactions were actually entered. This is an important concept if you have products with different types of transactions on a given date.
Regardless of the Cost of Goods Sold method (i.e., FIFO or Average), the following sequence is used when evaluating inventory transactions for a single date:
Transactions are first sequenced by Transaction Type:
- Beginning Inventory from QuickBooks
- Receipts and Assemblies with positive quantities
- Inbound Transfers (the TO warehouse side of a transfer)
- Added Cost Receipts
- All Other Transactions
- Balance Adjustments
- Changes to Cost Method (i.e., Average -> FIFO)
Transactions in one of the above categories are processed in the following sequence:
- Largest quantity first
- Smallest quantity last
- Transactions with same quantity are sequenced by Amount/Value
- Largest amount first
- Smallest amount last
- Cost Layer (FIFO/LIFO only)
- Transactions with same quantity and amount are sequenced by FIFO/LIFO Cost Layer.
- Entry Sequence
- Transactions for same quantity, amount (and layer) are sequenced by original entry sequence