You have a few options for correcting the balance, but the impact on your accounts will depend heavily on your financial system configuration and any interfaces you have set up. What's available to you will also hinge on the current status of the purchase order (PO) and whether invoices or other transactions have already been processed.
Option 1: Balance Adjustment in Maximo:
- You can perform a current balance adjustment in Maximo for the item in question, then journal the necessary account(s) in the finance system.
- The transaction details in Maximo-and any financial impact-will depend entirely on your Maximo configuration and how it integrates with your financial system.
- You may also have to correct the cost of the items as well in this scenario.
Option 2: Return and Reprocess
Alternatively, you could:
- Return the 75 units,
- Adjust the conversion factor, and
- Re-receipt the corrected amount.
This approach should reduce the inventory balance by 75 upon return and generate the appropriate reversing transactions in the financial system.
However, this depends on several factors:
- Whether invoices or follow-on documents have already been processed, and
- Whether the financial interface is setup correctly to handle this scenario.
- While the conversion factor can be modified at time of receipting, consider any impact on PO etc, this could be taken a step further with a PO revision.
Option 3: Return the Difference
There is a scenario where you could return the unwanted quantity, though I think this would create more of a head ache than options 1 or 2 due to the conversion factor and you would still have to journal the financial system etc.
Recommendation:
I'd strongly advise replicating this scenario in a non-production environment and test each option to understand the downstream effects before making any changes in production.
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Richard Scott
BPD Zenith
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Original Message:
Sent: 05-21-2025 08:53
From: Issac Thomas
Subject: Correcting Inventory Balances When PO's Conversion Factor is Incorrect
When conducting our weekly cycle count it was discovered that a line on a PO had a conversion factor of 15. However, 5 each was ordered and the conversion factor should have been 1. We now have a current balance of 75 instead of 5. What is the best way to correct this? Also, how would the corrective action impact the financial accounts? Thanks.
#Inventory
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Issac Thomas
Georgia Transmission
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