Which transaction reduces the quantity on hand of an inventory item?
Which transaction reduces the quantity on hand of an inventory item?
A stand-alone invoice reduces the quantity on hand of an inventory item because it typically indicates that the inventory item has been fulfilled and is now being billed to the customer. This directly decreases the inventory count. Vendor return authorizations and vendor bills generally do not affect the inventory count in this manner, and a sales order only represents a commitment to sell inventory, not the actual removal of items from inventory.
Correct answer is D
when an inventory item is selected on a sales order and the item can be filled, the quantity available decreases https://suiteanswers.custhelp.com/app/answers/detail/a_id/28059/loc/en_US
It can't be B because the item is committed but not actually decreased from inventory count. It has to be D because Inventory is only decreased when items have been fulfilled and therefore invoiced.
Correct answer is C
Correct answer is D
Sales Order does not impact on-hand inventory but creating a Stand-alone Invoice does impact the inventory. Sales Order: Truly non-posting transaction (Nothing is impacted until Item Fulfilment is created) Stand Alone Invoice Impact: Inventory decreases, COGS acc increases, Sales increase, A/R increases.