Change of process when cancelling joblines

The system used to create an inventory transfer to return the item back to the 'other' warehouse and used the cost price of the item code based on the current SAP Business One costing method for that item and warehouse combination.

If a difference existed between the cost price on the line of the job and the cost price determined by SAP Business One, the difference would be written off to the income statement.

This created an issue where the items being canceled had large fluctuating cost prices as it resulted in the income statement potentially being negatively impacted and the stock values in the balance sheet being misrepresented.

The cancellation process has now changed as of Eralis Job Version 8.81.100, to make use of the Goods Issue and Goods Receipt objects within SAP Business One instead of the stock transfer.

The system now follows the process below:

1. A Goods Issue is a process which transfers the item out of the Eralis Job work in progress warehouse and essentially removes it from the system. The transaction uses current SAP Business One cost for the item code / warehouse combination.
   The journal entry that is created will be:
   DR Stock Movement Variance Account (Eralis Job System)
   CR Work In Progress GL Account (Inventory account on Job WIP warehouse) 
2. The system then processes a Goods Receipt bringing the item code back into the warehouse selected by the user. This transaction is carried out using the cost of the item determined from the job line. The associated journal entry will be:
   DR Inventory Control (Inventory control account which the user selects)
   CR Stock Movement Variance Account (Eralis Job System) 
3. Finally the system will process a journal entry to adjust for the difference between the SAP Business One determined cost price and the Eralis Job determined price. This journal entry will be an adjustment made between the Stock Movement Variance Account and the Work In Progress GL account.
   If the cost price that is determined by SAP Business One exceeds the cost price that is held by Eralis Job, the journal entry that is processed will be:
   DR Work in Progress GL Account (Inventory account on Job WIP warehouse)
   CR Stock Movement Variance Account (Eralis Job System)
   Where the cost price held by Eralis Job exceeds the cost price determined by SAP Business One, the same journal entry will be processed, but with the debits and credits for the related accounts swapped around. The result of the change means that the income statement is not impacted with the cancellation and that the inventory control accounts and related cost determination are impacted with the true cost of the item. The change also applies to processing carried out using the Stock Return function which essentially allows the user to do a bulk cancellation process. 

This change is effective from Enprise Job Version 8.81.100 and above.