Work with Inventory Periods

Inventory periods define a period of time in which you can post changes to inventory. An inventory period is defined by the date on which it ends, or the ending date. When you close an inventory period, you cannot post any changes to inventory, either expected or invoiced, before this ending date. You cannot post any new values to inventory before the ending date. If you have open item entries in the closed period, meaning positive quantities that have not yet been applied to outbound transactions, you can still apply outbound quantities to these entries, even if the period is closed.

The following sections describe how to:

  • Create inventory periods.
  • Close inventory periods.
  • Reopen inventory periods.

To create an inventory period

  1. Choose the Lightbulb that opens the Tell Me feature. icon, enter Inventory Periods, and then choose the related link.
  2. Create a new line.
  3. In the Ending Date field, enter the last date in the inventory period that you want to define. When the period is closed, you will not be able to post inventory changes before this date.
  4. Enter a descriptive name in the Name field. Choose the OK button.

Closing Inventory Periods

The Closed field indicates whether or not the inventory period is closed to inventory value changes. You cannot edit this field.

You can close any inventory period, provided that the following is true:

  • There are no open outbound item ledger entries, meaning negative inventory, in that period.
  • The cost of all items has been adjusted using the Adjust Cost – Item Entries batch job.

This means that all outbound transaction quantities, such as those from sales orders, outbound transfers, sales invoices, purchase returns, or purchase CR/adj notes, must be applied to existing quantity in inventory.

To close an inventory period

  1. Before closing an inventory period, choose the Adjust Cost – Item Entries action to ensure that all cost adjustments are posted.

    Run the Close Inventory Period – Test report to determine if there are any open outbound item entries within the inventory period or any items whose cost has not yet been adjusted.

  2. Choose the Close Inventory Period – Test action.

    Run the Post Inventory Cost to G/L batch job to ensure that all costs are posted to the general ledger.

  3. Choose the Post Inventory to G/L action.

  4. On the Inventory Periods page, select the inventory period you want to close.

  5. Choose the Close Period action. After the inventory period has been closed, you cannot post inventory changes before the ending date. The cost of all items must be adjusted with the Adjust Cost – Item Entries batch job before you close the inventory period.

  6. Choose the Yes button to confirm that you want to close the period, or choose No to cancel the closing.

  7. The inventory period is closed and a confirmation message is displayed when it is finished.

Reopening Inventory Periods

After you have closed the inventory period, you cannot delete the inventory period. You can, however, reopen it, if you would like to allow posting before the ending date of the inventory period. Reopening a period also reopens all inventory periods with ending dates later than the period you reopen.

To reopen an inventory period

  1. Choose the Lightbulb that opens the Tell Me feature. icon, enter Inventory Periods, and then choose the related link.
  2. Select the inventory period you want to reopen.
  3. Choose the Reopen Period period action. Confirm that you want to reopen the period.
  4. All inventory periods with ending dates later than the period you selected are reopened.

See Also

Design Details: Inventory Periods
Finance
Inventory
Work with Financials