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Vendor cost changes affect purchasing decisions, margin reports, and retail pricing

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Negative inventory usually means the POS allowed or recorded more units leaving a stock record than it believed were available

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Vendor credits affect both accounts payable and product cost. If a credit is recorded in accounting but never tied back to the original purchase or receipt, margin reporting can remain wrong even though the vendor balance is correct

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A receiving exception occurs whenever what arrived does not match the approved order or expected data. Quantity, cost, package information, condition, and product identity should be reviewed before the product becomes part of sellable retail inventory