Posting a customer shipment that correctly relieves inventory (step-by-step)

Overview

Use this procedure to ensure shipments are fully posted, inventory is relieved, and GL/COGS entries are created as expected.

Prerequisites

• Sales order released/allocated
• Picked quantities confirmed (if using pick/pack)
• Lot/serial assignments completed (if required)
• Customer ship-to, carrier, and ship method set

Steps

1. Open the shipping transaction

• Sales > Shipping > Create/Confirm Shipment (menu names may vary)

2. Select order lines and quantities

• Confirm ship-from warehouse/bin
• Verify UOM matches intended ship UOM

3. Assign tracking and docs

• Enter tracking/pro numbers
• Print/apply labels and packing slips as needed

4. Validate lots/serials (if applicable)

• Assign required lots/serials for each line
• Resolve any expired/blocked lots

5. Post the shipment

• Click Post/Complete/Finalize
• Resolve any system prompts/errors before continuing

6. Confirm inventory relief

• Open Item Transaction History; verify issue relief by item/location
• Check lot/serial balance updated

7. Confirm GL posting

• Review the posting batch/journal
• Confirm COGS and Inventory accounts updated for shipped items

Common pitfalls

• Skipping the final Post: Picked ≠ Shipped
• Wrong ship-from bin resulting in no relief at the intended location
• UOM conversion mismatch causing partial or over-relief
• Missing lot/serials blocking relief silently until posting

Best practices

• Lock default ship-from locations on sellable items
• Require lot/serial assignment at pick confirmation
• Automate a dashboard for “Unposted Shipments” and “GL Batches in Error”
• Reconcile Inventory Valuation to GL weekly