disposals

Warehouse disposals are used when disposing of the product in order to remove damaged or expired product from inventory. Creating a disposal transaction removes the product from inventory and records the disposal expense to warehouse overhead. Optionally, different disposal codes can be established to record the disposal expense to different accounts depending on the reason for the transaction. If using disposal codes, the codes must be set up in Admin> Business> General> Definitions> Disposal Categories.

• Create disposal transaction
• Post disposal transaction
• Journal transaction

Create a Disposal

1. In General>Warehouses, select Disposals.
2. In the Warehouse Product Disposals main index, click to create a new disposal record.
3. In the New Record dialog box, In the Trans Date field, enter the date that the product will be disposed of.
4. From Warehouse No, select the required warehouse where the product will be disposed from, and then click 'OK'.
5. In the Warehouse Product Disposals screen, click to add a new disposal product.
6. The Product Inventory View screen will display all current products available for disposal as of the date entered in the dialog box.

 



 

7. Select the product to be disposed of and enter the number of units to be disposed of in the Units Entered field
8. Disposal Category No is optional and identifies the reason that the product was disposed. The code is user-defined and set up in: Admin>Business>General>Definitions>Disposal Categories. There is an option to have the disposals coded to a different account for each disposal category. If no code is defined, the disposal will be journalized to the default warehouse disposal code. If desired, select a disposal category number.
9. Click 'OK' and the Warehouse Product Disposals screen will appear with populated fields.

 



 

10. Trans Code displays the type of transaction. The field will be set to Disposals.
11. Product Type displays the type of product. Available options displayed are: Field Products, Medication, or Vaccinations.
12. Product No displays the pre-defined product number.
13. Product Name defaults from Product No and displays the name of the product.
14. Lot No is a unique identification number for the product, and is generally used for medications and vaccinations.
15. Location No indicates the location where the product is stored.
16. Quantity represents the total quantity of units to be disposed of.
17. Amount is based on the inventory valuation method as established in the registry. Available options are: FIFO (First In First Out) or Average Cost.
18. Ref No is an automatically generated unique reference number used to identify the disposal line.

19. Field Crew No is an optional field to select the field crew that disposed the product.
20. Field Crew Name displays the name of the field crew that disposed the product if applicable.
21. Disposal Category No is optional and identifies the reason that the product was disposed. The code is user-defined and set up in: Admin>Business>General>Definitions>Disposal Categories. There is an option to have the disposals coded to a different account for each disposal category. If no code is defined, the disposal will be journalized to the default warehouse disposal account.
22. Disposal Category Name defaults and displays a description of the reason for disposal.
23. In the Comments field, enter any additional information related to the product disposal.
24. Selecting the Void flag will cancel the product disposal.

Post Disposal Transaction

Posing the disposal transaction locks the record from further edit and creates the journal transaction to remove the amounts from inventory.

1. In the Warehouse>Disposals index, select the record(s) that are required to be posted. Right-click and select Post or select Options>Post to post the records.
2. To un-post a transaction for edit, select the record(s) that are required to be un-posted. Right-click and select UnPost or select Options>UnPost to un-post the records. This process will put the record in Reversed status and reverse the journal transactions that were created at post.

Journal Transaction

The journal transaction is created when the record is posted. The journal transaction will credit the amount from inventory and debit the appropriate expense. If there is a disposal code assigned to the disposal transaction, the journal transaction will debit the expense for the disposal code, otherwise the disposal cost will be debited to the default warehouse disposal account.