The physical inventory process is carried out for a particular inventory organization with the following parameters: -> Negative quantity Tolerance Percentage is set to 10% -> Approval Type = "Always' The system says that there are 100 on band, but you only counted 95
What will happen?
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A. B. C. D.B.
The physical inventory process is used to reconcile the actual on-hand inventory with the expected inventory quantity recorded in the system. In this scenario, the physical inventory process is being carried out for a particular inventory organization with the following parameters:
The system is reporting that there are 100 items on hand, but upon physical counting, only 95 items are found.
Based on the parameters set, the system will perform the following actions:
A. The setup is invalid; it will give an error message. This answer is incorrect. There is no issue with the setup as the parameters are valid and have been set up correctly.
B. Because the 95 is within the 10% tolerance, it will post without approval. This answer is partially correct. The negative quantity tolerance percentage is set to 10%, which means that a variance of up to 10% is allowed between the expected and actual inventory quantity. In this case, the variance is 5%, which is within the allowed tolerance limit, so the inventory will be posted without requiring approval.
C. The system will ask a user to recount before posting. This answer is incorrect. Since the variance is within the allowed tolerance limit, the system will not ask for a recount before posting.
D. An approval will be required before posting. This answer is incorrect. Even though the approval type is set to "Always," the variance is within the allowed tolerance limit, so the inventory will be posted without requiring approval.
In summary, the correct answer is B. Since the variance is within the allowed negative quantity tolerance percentage, the inventory will be posted without requiring approval.