Inventory Transfer shows zero value after an when an Override Cost is entered on a Item Receipt.

 

The following are the steps to reproduce the actual scenario where there is no GL impact on Inventory Transfer:

1.  Transactions > Customers > Issue Return Authorization

2.  Enter Customer > Quantity 1 > Enter Location ( Return Location is not different from the Location assigned on Item Fulfillments)

3. Click Receive

4. New Item Receipt > Date 11-22-2011 >  Override Rate is populated if Default Return Cost is set on Item Record or if there is no value,  manually enter a rate 10.00.

5. Go to Transactions > Inventory > Transfer Inventory

--From Location : Return Location

--To Location: Location A

--Hit Save.

6.  Go back to the saved Inventory Transfer > no GL Impact.

7.  Customize Inventory Valuation Report with running balance filtered by Return Location:

Item Receipt (Cost of Sales Adjustment) > Value (10.00)

Item Receipt > 11-22-2011  > Qty > 1 > Value 10.00

Inventory Transfer > 11-22-2011 > -1 > Value 0.00

Solution/Workaround/Gotcha/Recommendation Details: 

1.  Change the date of the Inventory Transfer from 11-22-2011 to 11-23-2011.

2.  Inventory Transfer now have a GL Impact

--Debit Inventory Asset 10.00 (To Location: Location A)

--Credit Inventory Asset 10.00 (From Location: Return Location)

3.  Inventory Valuation Report now shows the following:

Item Receipt > 11-22-2011 > Qty > 1 > Value 10.00

Inventory Transfer > 11-23-2011 > -1 > Value 10.00

4.  In NetSuite Costing Engine, the value of an item on a location (MLI=Yes) is calculated according to the following hierarchy:

--Purchases

--Purchases Credits

--Adjustments

--Sales

--Sales Returns

Eventhough the receipt of the RMA is an increase in inventory, it originated from a Sales Return and it is considered as the last transaction for the day. Inventory Transfers are part of NetSuite Adjustments which is third from the hierarchy above.

This information is available in the Help Guide under the topic "Cost of Goods Sold Adjustments'. Please click link Items and Inventory Management : Using Item Records : Item Costing : System Cost of Goods Sold Adjustments.