POS Override Adjustments

Owned by Stephen Juliano (Unlicensed)
Last updated: Feb 08, 2022 by Colleen Juliano
5 min read

Overview

The POS override screen allows you to make inventory adjustments that are needed due to the POS override function. When a person walks up to your counter with an item in their hand and you scan it, you really cannot have a pop up screen tell you that you are out of this item, when they are holding it in their hands. The override function will automatically complete the sale and make an entry into this screen and inventory that will need to be adjusted when the item is finally received or the count is adjusted. 

INV > Transactions > POS Override Adjustments

Till Date – this date is the date to show items that need to be cleared to. So any items that had a transaction prior to this date will show on the consolidated or detail screen.
Warehouse – the ware house that you would like to see overrides for. POS overrides need to be warehouse specific.
Once you have entered the Till Date and a warehouse you can press the lightning bolt icon see all the POS override items that need to be cleared.

Views Detail VS Consolidated

You have your option of seeing the items in a detail view or a consolidated one. The consolidated view will roll up all like items in on line item and give you a total of the overrides for an item. The detail view will not roll up the items but instead list the total per transaction and it will include a description. Other than those few differences the two views are the same and perform the same functions

What Causes Overrides

A POS override in its most basic form is caused by your inventory counts being incorrect in your system. That terminology is rigid and can be misleading; the reason for the count being wrong is something that needs to be evaluated when there are many instances of POS overrides. There could be a large occurrence of shrinkage or theft, possibly item set up issues with the unit of measure that need to be addressed or something as benign as the item was received and placed out on the floor but the PO receipt has yet to be recorded into TRX. There are many reasons that items go on the override and corresponding report it is good to clear these transactions on a regular basis and make sure it is not happening too much.

Benefits to the Override Process

There are many benefits to handling this process in the background and dealing with it later, not the least of which is customer satisfaction at the register. You do not want a customer waiting while you receive an item into inventory so you can sell them the item they have in their hand. Also you would never make a customer wait while you tried to figure out why the item is not in stock so you would never fully evaluate any potential problems.

When an item is goes through the override process we create a negative entry in inventory GL account, but we do not create a negative entry in you inventory physical counts. The reason for this is it would create a negative inventory valuation which you should never have, as it skews your valuation report. So when an override happens you have a discrepancy between your GL and your inventory valuation as well as your TRX count and physical count, this will not be corrected automatically when items are received it must be done manually.
To manually clear this discrepancy; populate the consolidated and detail screens by choosing a warehouse and till date and pressing the lightning bolt. To choose which items to adjust highlight an Item from the top half of the screen and then double click to bring it down to the current availability detail section. If you have items in your warehouses the amount will show under the on hand section. In the example above you see the highlighted item had 12 overrides and there are 20 on hand in warehouse 1. Choose the warehouse to issue items out of and the quantity to issue in the "Reduce QTY by" box and then press the issue icon. This will lower your quantity on hand by 12 to make up for the items that you sold when you did not have inventory. 

A transaction will be made that will debit inventory and credit the physical variance account. This will reverse the original POS override entry that hit those same accounts. If you choose not to clear an entry the discrepancies will remain until you complete a physical count, then they will be captured by the same transaction that would have happened if you issued out inventory from the POS override adjustment.
If you choose not to make an adjustment and make adjustments through physical count (not advised) you will need to remove these items from the adjustment screen. The "clear" icon in the current availability box will only remove the item from the adjustment screen, it will not make any adjustments and it is not reversible. The "CLEAR ALL" icon will remove all items at once. This icon is only to be used immediately after a physical count. That is the only time you can be assured that all items on this screen have been accounted for. 

  • Reduce QTY in warehouse – allows you to choose which warehouse inventory you will want to reduce to account for the override adjustment

  • Reduce QTY by – the amount of inventory you would like to take out of inventory.

Note: you do not have to clear out the whole amount that has been overridden but it does not make practical sense not to.

  • Issue icon – The issue icon will issue the amount of items that you have selected to reduce inventory by out of inventory. This act of issuing will account for the items that you sold when you did not have any in stock.

  • Clear Icon – The clear icon will remove the transaction from the adjustment screen permanently you will not be able to get it back and any discrepancies will wait until a physical count to be cleared.

  • Clear All Icons – This will remove all items at once from the POS adjustment screen. This is very dangerous and should only be done immediately after completing a physical count when you know all items have been accounted for.