Work with inventory periods

Inventory periods define a period of time in which you can post changes to inventory. An inventory period is defined by the date on which it ends. When you close an inventory period, you can't post any changes to inventory, either expected or invoiced, before this ending date. You can't post any new values to inventory before the ending date. If you have open item entries in a closed period, meaning positive quantities that aren't applied to outbound transactions, you can still apply outbound quantities to these entries, even if the period is closed.

The following sections describe how to:

• Create inventory periods.
• Close inventory periods.
• Reopen inventory periods.

To create an inventory period

1. Select Search (Alt+Q) in the upper-right corner, enter Inventory Periods, and then choose the related link.
2. Create a new line.
3. In the Ending Date field, enter the last date in the inventory period that you want to define. When the period is closed, you can't post inventory changes before this date.
4. Enter a descriptive name in the Name field. Choose the OK button.

To close inventory periods

The Closed field indicates whether or not the inventory period is closed to inventory value changes. You can't edit this field.

You can close any inventory period if the following conditions are true:

• There are no open outbound item ledger entries, meaning negative inventory, in that period.
• The cost of all items was adjusted using the Adjust Cost – Item Entries batch job.

You must apply all outbound transaction quantities, such as those from sales orders, outbound transfers, sales invoices, purchase returns, or purchase credit memos, to existing quantity in inventory.

To close an inventory period

1. Before closing an inventory period, choose the Adjust Cost – Item Entries action to ensure that all cost adjustments are posted.

   Run the Close Inventory Period – Test report to determine whether there are open outbound item entries in the inventory period, or any items whose cost wasn't adjusted.

2. Choose the Test Report action.

   Run the Post Inventory Cost to G/L batch job to ensure that all costs are posted to the general ledger.

3. Choose the Post Inventory to G/L action.

4. On the Inventory Periods page, select the inventory period you want to close.

5. Choose the Close Period action. After the inventory period is closed, you can't post inventory changes before the ending date. The cost of all items must be adjusted with the Adjust Cost – Item Entries batch job before you close the inventory period.

6. Choose the Yes button to confirm that you want to close the period, or choose No to cancel the closing.

7. The inventory period is closed and a confirmation message displays.

Reopening inventory periods

After you close an inventory period, you can't delete it. You can, however, reopen it. For example, if you would like to allow posting before the ending date of the inventory period. Reopening a period also reopens all inventory periods with ending dates later than the period you reopen.

To reopen an inventory period

1. Select Search (Alt+Q) in the upper-right corner, enter Inventory Periods, and then choose the related link.
2. Select the inventory period you want to reopen.
3. Choose the Reopen Period period action. Confirm that you want to reopen the period.
4. All inventory periods with ending dates later than the period you selected are reopened.

Related information

Design Details: Inventory Periods
Finance
Inventory
Work with Financials

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