Inventory Voucher Effect - Inventory

For each kind of voucher, whether posting it moves physical stock, and in which direction. This setting tells the system which of your documents are stock documents.

When to use it

Once, when inventory is being set up, to match the way your business actually receives and issues goods.
Again if you start using a document you were not using before. For example, you might start receiving on a Goods Receipt instead of straight onto the Purchase Invoice.

Before you start

Your voucher types already exist. You cannot add or delete a row here. The list is the voucher types you already have, and only the two settings on each can be edited. New voucher types come from the Voucher Type master.
This setting affects the whole of your accounts. Only someone who understands the consequence below should change it.

Where to find it

Setup > Inventory Setup > Inventory Voucher Effect.

The fields on this screen

How it works

Stock on hand, every stock report and the costing run all read your vouchers through this setting. A line on a voucher counts as a stock movement only if its voucher type is ticked here. Whether it adds or subtracts comes from Direction.

The setting is read every time the figures are worked out. It is not stamped on the voucher when you save. That is the consequence to understand before you touch it:

Ticking a type on makes every voucher of that type ever posted start counting as stock, not only the ones entered from now on. Untick one and all of that history stops counting. Balances, valuations and stock reports move the moment the setting changes.
After any change here, run Recompute on the Inventory Valuation screen. Until you do, the costed values still follow the old setting and will disagree with the quantities.
Direction also feeds the check that refuses to issue more than is on hand. Turning a type on can make an issue that used to save start being refused for insufficient stock.
On production vouchers, the line's own role (what went in, what came out) decides its sign. The Direction on the voucher type does not override it.

The product ships with Purchase, Sales, Purchase Return, Sales Return, Consumption and Production ticked, and every other type off. That default suits a shop that receives on the purchase bill. A shop that receives on a separate document needs that document ticked instead, not as well.

Tips and common mistakes

Never tick both the receiving document and the bill for the same goods. Stock is then counted twice, and nothing warns you: the quantities double.
Recompute after every change, even a small one.
If a stock figure looks wrong across the whole company and not only for one item, check this screen before you check the vouchers.

Inventory Valuation (Recompute lives there), Voucher Type master, Stock Period Snapshots, Stock reports.