Reversing a consignment in SIMS

Reversing a consignment in SIMS

Question:  I just updated a consignment from the Receipt & Costing Module, can I reverse it?


Answer:  SIMS includes a function to enable users to reverse a consignment updated into stock.  The option is available from the Receipt & Costing Module as per the following figure.


The objective of this function is to revert SIMS back with the original quantity in stock per location per item on the consignment including the average cost before the updating of the consignment. SIMS also provides for the option to copy and paste an existing consignment as detailed in the following figure.






Users will require having access to the Security Function on Reversal RC_REVERSE within their group rights to run this function.  If you do not have access to this permission, please refer to the end of this FAQ for further details.


WARNING:  Before you start this process please check the following:

  1. If the reversal you want to correct is related to the VAT amounts or VAT codes only, this may be fixed from SFM without the need to reverse the full consignments.  VAT amounts do not affect the  landed cost of products.
  2. The amount to fix does not has a substantial impact on the consignment and therefore the landed costs of each item will not change a lot.
  3. You have not processed any location transfers.  If yes, the user MUST manually reverse these transfers to their original location.  System will provide a list of locations transfers processed on the system.
  4. You have updated the consignment in the last few days.  Reversing older consignments may have different affects on the costing of each product.
  5. Not processed any sales from the consignment items as this may give erratic results to your quantities and average costs. If you reverse this consignment, the system will post an adjustment against these transactions.  
  6. We strongly suggest that you Exit SIMS immediately after reversing a consignment to re set all calculations and conditions

Validations

There are a number of validations that the system will process on the system to confirm if the reversal can be processed successfully.


The consignment is updated into stock.
The consignment is not reversed already.
Validate and cross check if the user needs to run a quantity validation on the system. The system will stop the process and you need to run Data Validation from the ADMIN Menu on SIMS
System checks if there are any location movements for any of the items within this consignment, if yes please refer to section  Dealing with Exceptions
The system will confirm if there are any transactions (Other Costing Sheets (RC), Local Purchases (RD), Adjustment Add (AA), Opening Entries (OE), Receipt of Finished Goods (RW) or Returns to Supplier (RS)) after the current consignment date being reversed. If any of the above validations fail, please refer to the section  Dealing with   Exceptions


Processing the reversal

If the above is all complete, the system will start the process to reverse the consignment and will perform the following processes:


Maintain a list of quantity in stock including the Stock Code, Location and quantity in stock as at now.
Posts the adjustments deduct (or add) to get the stock quantity to 0 (all locations) for all the items in the consignment.
Get last cost of items before the posting of the updated consignment.
Post the Adjustment Add with the Current Qty in stock less the quantities in the costing sheet. If the result balance is negative the system will post an adjustment deduct. This usually happens if sales were processed from the consignment. As stated previously in this document, first you need to reverse any location transfers entries processed from this consignment.



When complete, the user will have the option to copy and paste all the consignment details, change the invoice references and consignment references, and to re-process the consignment from the Copy & Paste button.


Dealing with exceptions


Location Transfers:  If it is identified that users processed any location transfers on SIMS after the consignment is updated into stock, the system will display the message shown below. We strongly recommend that you click OK to view the movements processed on the system. Users will have the option to cancel the reversal process.


The system will provide the option to print the report of all the location movements effecting this consignment. We recommend to print/export to Excel document to enable you to reverse any locations transfers posted on to the system.





Transaction Posting: The system will not finish the whole reversal process if users posted any sales transactions, adjustments, purchases, etc, from any item in the consignment. If this is the case, the system will prepare an Excel spreadsheet with the required adjustment add and/or deduct with the required information including stock item code, location code, quantity and the last know average cost.  






If the user confirms the above, the system will perform the following:

  1. Post the required adjustment to bring all quantities for all locations of the consignment items with zero quantity.
  2. Export the Adjustment Add (and Adjustment Deduct where applicable) with the quantities as at today less the consignment quantity.  
  3. Exports the Excel spreadsheet is in the format ready to be imported into SIMS. The system also provides the last known average cost. It is IMPORTANT that the user must confirm this average cost and amend accordingly before importing the adjustments. When ready, import the adjustments. Please make sure that you do not import the same sheet more than once.

The RC_REVERSE permission

To get access to this permission, you need to go to ADMIN > User Accounts and highlight your user ID and check the Group Column to confirm your Group ID.  


Back from the ADMIN Menu, select Group Rights and highlight the group where your user ID is allocated. Click on the Available Permissions tab, find the permission code RC_REVERSE and tick the box next to it. From the Task Bar options, click on the button [ U ] to make tagged permissions available. This should give you access to the reverse button.


Impact on SFM Interface


For systems configured with the full SFM interface (sales, purchases and cost of sales ), users must perform the following:
  1. Export all entries from SIMS to SFM (SIMS > Admin > SFM Interface > Export)
  2. From SFM > Purchase Ledger > Post a Credit Note against each of the suppliers in the Consignment including suppliers of the consignment costs
  3. Use the Same Date, Amounts and VAT codes and VAT amounts (where applicable) exactly like the consignment values
  4. When asked for the Nominal account code, enter the Stock Adjustment Account to offset the values posted in this account during the reversal of the Consignment.  Please check if you have more than one adjustment account set-up in the SIMS & SFM Interface.

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