Low valuable Items Accounting

To account for the LVCI by responsible employee, the standard functionality of warehouse management using bins is used. The business process looks as follows:

• LVCIs are accounted for in a separate location, for which the Bin Mandatory attribute is set;
• bins for each responsible employee are created in the location. That is, the name of the bin, for example, can match the Code of the responsible employee;
• to transfer LVCI to a responsible employee, the Inventory Shipment and Inventory Receipt are used;
• further actions with the items are possible only if the bin is indicated. Thus, the use of bins allows you to track the items by responsible employees.

Location setup and creating bins for responsible employees

For LVCI accounting, it is necessary to create a location and bins that have to match a responsible employee. To do it:

1. Click to open Search and enter Locations, follow the link.
2. Click New to create a new location. Enter Code and Name of the location.
3. On the Warehouse FastTab, enable the Bin Mandatory setting. Learn more: Set Up Locations to Use Bins.
4. It is then necessary to create responsible employees for the warehouse. You can use the Create bins by employee code feature.
5. On the warehouse page, click Bins.
6. On the Bins page, click Related > Create bins by employee code.
7. On the function request form, select the code of the employee who is a responsible employee. It is possible to select several employees at the same time, as well as set additional filters for selection.
8. The function will create bins according to the specified settings. Bin code will match the employee code of the responsible employee, bin description will contain the employee’s full name.

Note
The function of creating bins by employee code can be run also from the employee card.

LVCI accounting setup

Make sure that the appropriate G/L accounts have been created for LVCI accounting on off-balance sheet accounts.
An appropriate General Business Posting Group must also be created and configured.
In the Inventory Setup, in the Gen. Bus. Post. Group low-val field, it is necessary to specify general business posting group to post the transfer of the LVCI to a responsible employee.

Issuing LVCI to a responsible employee

To issue LVCI to a responsible employee, the Inventory Shipment with the Not Valuable type is used. To create an Inventory Shipment, do the following actions:

1. Click to open Search, enter Inventory Shipment, follow the link.
2. Click New to create a new document.
3. In the Act Type field, select Not Valuable.
4. For this type of act, the Location code low-value items field will be displayed in the document header, and this field is required. Select the appropriate location.
5. Fill in the document lines with mandatory indication of responsible employee by each item in the New Bin Code field. This field is also required for this type of act.
6. After filling in all required fields of the document, click Post.
7. The Inventory Shipment will be posted, and an appropriate Inventory Receipt will be created.
8. In the Inventory Receipt, the General business Posting Group field will be filled in with the value from an appropriate field in Inventory Setup.
9. After posting the Inventory Receipt, the item will be assigned to a responsible employee.

To view the items issued to responsible employees, use the Bin Contents page.

Canceling the Transfer of LVCI to a Responsible Employee (Document reversal)

If there is a need to cancel the posting of the Inventory Shipment with the Not Valuable type and the Inventory Receipt, follow the steps in the specified sequence:

1. Click to open Search and enter Inventory Shipment, follow the link.
2. Click New to create a new document.
3. After creating the new document, click Shipment > Copy Document.
4. The Copy Inventory Document tab opens, fill in the Parameters:

Field	Description
Document Type	Specify the document type "Posted Inventory Shipment" from which the data will be copied.
Document No.	Specify the number of the related document from which the data will be copied.
Include Header	Specify whether to copy the information from the header of the selected document.
Recalculate Lines	Specify if necessary to renumber the lines.
Copy as Correction	Specify that the new document will be marked as a correction.
Copy Item Tracking values	Indicates that item tracking data will be copied to the new document lines.
Specify Applied Entries	Determines that the "Applied from Entry" field will be automatically filled with the item entry number.

Click OK and create a corrective Inventory Shipment with the Not Valuable type.

5. Post the Inventory Shipment with the correction mark.
6. After posting the Inventory Shipment, the corresponding Inventory Receipt with the correction mark will be automatically created.
7. Post this Inventory Receipt.

Item transfer between responsible employees

To transfer an item between responsible employees, Item Reclassification Journal is used:

1. Create journal lines manually or use the Get Bin Content feature.
2. Select a value in the New Bin Code field to transfer an item to a new bin.
3. Post journal lines.

All entries related to the use of bins can be viewed on the Warehouse Entries page.

See Also

Inventory Shipment
Inventory Receipt