Material outbound is a record of every product that goes out of warehouse. Ideally this should be created by your warehouse manager or store keeper whenever they are shipping materials out. Outbound of materials could be for various reasons like sales or purchase returns or internal transfers from one location to other location or stock write offs. Depending upon the nature of the outbound, material outbound type has to be selected.


To create a new material outbound, in the main page, Go to More > Material Outbound > New


Important fields in Material outbound:


1. Location: Location is a mandatory field. Select the location from which the product is being issued. Instead of selecting the location manually every time, if the user location mapping is made, location gets auto populated based on the logged in user. To know more on user location mapping refer User Location Mapping. 


2. MON Number: This field will appear only if you have disabled auto numbers for material outbounds. To know more on transaction numbers refer Transaction Numbers. If you are using unique tracking numbers for every package that you ship out, it is recommendable that you disable auto transaction numbers for material outbound and manually input the unique tracking number of the package in to this field at the time of material outbound.


3. Outward Type: Outward Type has 4 options


    i.   Sales: This type should be used when materials are being issued against a sales order.

    ii.  Purchase Returns: This type should be used when the material is being sent out against purchase returns

   iii.  Stock Transfer: This type should be used when the material is being issued for internal stock transfers to other location.

  iv.   Stock Write Off: This type should be used when you wish to write off the materials in inventory.


4. Customer: This field will show up when the outbound type is 'Sales'.  When you select a customer, all outstanding sales orders against the selected customer is showed. From the list you just have to select the products that are being issued. You can change the quantity if the quantity being issued is less than the ordered quantity. 


5. Supplier: This field will show up when the outbound type is 'Purchase Return' and Purchase Return Order is enabled. When you select a supplier, system will show all the outstanding Purchase Return Orders from the selected supplier. You just have to select the products that are being shipped out. You can reduce the quantity if the quantity being shipped is less than the quantity in return order.


To know more on Purchase Returns refer Purchase Return.


6. Purchase Order No: This field will show up when the outbound type is 'Purchase Return' and Purchase Return Order is not enabled. When you select a Purchase Order, system will show all the material inbounds made against the selected purchase order. You just have to select the products that are being returned. You can reduce the quantity if the quantity being returned is less than quantity inbound. 


To know more on Purchase Returns refer Purchase Return.


7. To Location: This field will appear when the outbound type is 'Stock Transfer'. When you are transferring products from one location to other location of your business, you have to select the  to location to which product is being sent. Once you select the 'to location', system will allow you to add products being sent and the quantities. 


These outbound quantities are available for inbound in the location to which products are sent. To know more inbound process refer Material Inbound.


8. Expense A/c: This field will be shown when the outbound type is  'Stock Write Off'. Here you have to select the general ledger account against which value of materials written off has to be adjusted. To know about general ledgers refer General Ledger.


Other important aspects:


Inventory:

In Arka Inventory, inventory of a product is determined based on inbound and outbounds of the product. Whenever you create a material outbound of a product in a location, quantity of that product in that location will decrease by the quantity outbound. Value of the corresponding inventory will also gets decreased. Value of the inventory is determined based on moving average price.


Accounting aspects:

Whenever you create a material outbound, Arka Inventory will create following journal entries:


a. If the outbound type is 'Sales'


Cost of Goods Sold A/c (The general ledger selected in the product 'COGS A/c' field)                                           Dr. 


To Inventory Asset A/c  (The general ledger selected in the product 'Inventory Asset/Expense A/c' field)  



b. If the outbound type is 'Purchase Return'  


AP Clearing A/c  (The general ledger selected in the product 'AP Clearing A/c' field)                                              Dr                           


Inventory A/c (The general ledger selected in the product 'Inventory Asset/Expense A/c' field)                        



c. If the outbound type is 'Stock Write Off'


Expense A/c (The general ledger selected in the 'Expense a/c' field in Material Outbound)                                   Dr


Inventory A/c (The general ledger selected in the product 'Inventory Asset/Expense A/c' field)                            



For stock transfers no journal entry is created.



If you are using accounting application which has direct integration with Arka Inventory (like QuickBooks Online), the journal entries are auto synced to the accounting application. If you are using other accounting applications (applications not having direct integration), you have to export the journal entries in to excel and upload it to the accounting software that you use.


Edit Restrictions: A material outbound, once created can not be edited. You have to delete and recreate if in case outbound is wrongly created.