Callback from financial system for inventory value adjustment

This interface is implemented as a call to the updateInventoryCost API in Sterling™ Order Management System Software. This should be used whenever the Accounts Payable application generates a variance between expected PO cost and the actual cost on the Payables Invoice.

The variance amount should be passed back to Sterling Order Management System Software to be reflected in the inventory value. Sterling Order Management System Software then tries to adjust the inventory value and re-compute the average cost. If the total on-hand is less than the purchase quantity (due to subsequent shipments or issues), the total variance is prorated and applied to the remaining on-hand inventory. An additional event is raised to adjust the difference in the financial system.

What are the expected updates onSterling Order Management System Software?

Inventory value is adjusted by the variance amount. Average cost is recomputed. If the total on-hand is less than what has to be adjusted, the total variance is prorated and applied on the remaining on-hand inventory. The amount not applied is passed back to the financial application so that it can be stored in an appropriate variance account.

Using the INVENTORY_COST_UPDATE Transaction ID, configure the following event for the Callback from Financial System process.