Stock Status Issue

[Luvsql]

We have been able to keep out stock status relatively in sync with our GL (stock status, not historical). We are now out by over $5000. I have verified the transactions for the month of June for SOP, POP and Inventory match the total net change value of the inventory accounts in the GL as of June 30, 2004, so everything is hitting the GL correctly. If this is the case, how can we prove that the stock status is correct? We believe our GL is the right number because we have proved the numbers by reconciling every transaction since January.

How can we use the stock status if it is not correct? We have every item marked to revalue at 0%, so any cost difference on our invoice matchings would hit the stock status. We have checked everything. We have gone over TK from MBS. I don't believe the purchase receipts table is right.

 

[Dukester0122]

I don't believe jaz was right about the inventory cost if you're using FIFO and Current Cost.

We're also using the same costing and have 16 sites. If you're using FIFO here's what happen:

Receipts
10 @ $100 = $1,000
2 @ $110 = 220
Item Cost = $1,220

To check your Costing Layer, you can either open Purchase Receipts Inquiry or go to SQL then do a query using table IV10200.

To verify GL Accounts, check item accounts in Item Card then get the Inventory Account. Open Financial Inquiry>Detail, type the Item Inventory Account Number then enter dates. You'll see 2 entries showing the $1,000 and $220 which is equal to your Item cost.

Unmarking the Post to GL won't create any financial entries for Inventory adjustments. This would be useful for entering physical counts and doing a negative adjustments. Since negative adjustments don't have any value or amounts and it will only affect inventory quantities.

 

[Luvsql]

I added VB code to the Inventory Batch screen that forces the post to GL checkbox as marked.

We definitely need to post our variances and negative adjustments to the GL. If we have lost items or need to record an item out of inventory, we need our inventory value in the GL to reflect this. Otherwise, our financial reports that we give our auditors are completely wrong.

 

[jazgeek]

Sorry Dukester,

been through this a million times with accounting

receipt of 100 at $10.00
stock status = $1000
Gl inventory value $1000
items current cost = $10.00

receipt of 10 pcs at $12.00
item current cost = $12.00
stock status report =$1320
GL inventory value $1120

where's the $200? Where do you get the $200 and from where is the eternal question that accounting deals with in our environment. just imagine what a zero dollar PO receipt or a $0 sample does to your inventory valuation.... if GP followed the FIFO layer in terms of costing it would be ok, but it does not. GP seems more suited for a standard cost environment where the $200 would be tracked in an unrealized or realized Purchase price variance.


current cost in a perpetual environment adjust with:
1. receipt
2. invoice
3. inventory transaction cost

standard cost in a periodic environment adjust when someone
makes the adjustment to the item card only.

GL does not revaluate inventory based on changing costs on an inventory card (subledger side)

Luvsql's sql view does a nice job of reconciling transaction to gl entry (or vice a versa if I read it correctly), but unfortunately does nothing to tell you what to do with the variance.

my 2 cents (2.5 cents perpetual)







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and they wonder why they call it Great Pains!

jaz

 

[Dukester0122]

Probably we're doing things in different ways because ours looks fine.

Anybody had change from Actual Costing to Standard Costing in Great Plains, would appreciate any feedback.