User Tools

Site Tools


faq:inventory_reconciliation

Differences

This shows you the differences between two versions of the page.

Link to this comparison view

Both sides previous revisionPrevious revision
Next revision
Previous revision
Last revisionBoth sides next revision
faq:inventory_reconciliation [2013/04/25 14:02 (11 years ago)] clifffaq:inventory_reconciliation [2017/01/24 12:28 (7 years ago)] – [Special Reporting] cliff
Line 15: Line 15:
 So what happens if you change a PO line, an inventory value line on a bill, or a line on an invoice? The answer is you break things, and can no longer reconcile. If you follow proper processes things should reconcile unless you change things after the fact. The one exception to note is overselling. If you oversell on an invoice you oversell at standard cost. When you receive the product at cost other than standard, there is now an outage in the system. In order to fix this issue you have to go back to all invoices that were oversold and change the cost on them to the amounts from the PO line(s) that would have filled them. So what happens if you change a PO line, an inventory value line on a bill, or a line on an invoice? The answer is you break things, and can no longer reconcile. If you follow proper processes things should reconcile unless you change things after the fact. The one exception to note is overselling. If you oversell on an invoice you oversell at standard cost. When you receive the product at cost other than standard, there is now an outage in the system. In order to fix this issue you have to go back to all invoices that were oversold and change the cost on them to the amounts from the PO line(s) that would have filled them.
  
-So what kind of things can cause problems if you change them after the fact? If you change either side of the PO to Bill, or PO to Invoice process you will be out of reconciliation. So editing cost or quantity of a PO line, editing cost or quantity of an invoice line, or changing the amount on the inventory line of a bill after the fact will cause problems. Manual adjustments effect the sub-ledger totals so we need to place manual adjustments in the list of things that break reconciliation. So why do manual adjustments break the system? Ans: because every manual adjustment has to have a corresponding GL adjustment of equivalent dollar value. Here is a list of some things not to do: +So what kind of things can cause problems if you change them after the fact? If you change either side of the PO to Bill, or PO to Invoice process you will be out of reconciliation. So editing cost or quantity of a PO line, editing cost or quantity of an invoice line, or changing the amount on the inventory line of a bill after the fact will cause problems. Manual adjustments effect the sub-ledger totals so we need to place manual adjustments in the list of things that break reconciliation. So why do manual adjustments break the system? Ans: because every manual adjustment has to have a corresponding GL adjustment of equivalent dollar value. 
-  * Change the cost on an invoice line +
-  * Change the cost or quantity on a PO line +
-  * Change the Inventory Value posting on a bill +
-  * Oversell an item on an invoice +
-  * Make a manual adjustment without a corresponding GL entry to that hits the inventory value for the same amount+
  
 +  * Here are some key points:
 +    * Do not change the cost on an invoice line
 +    * Do not change the cost or quantity on a PO line after PO is completed
 +    * Do not change the Inventory Value posting on a bill
 +    * Do not oversell an item on an invoice
 +    * Do not make a manual adjustment without a corresponding GL entry to that hits the inventory value for the same amount
  
 ===== Process Suggestions ===== ===== Process Suggestions =====
Line 194: Line 195:
 ==== Stock/Ledger Reconciliation report ==== ==== Stock/Ledger Reconciliation report ====
 This report is designed to compare a back dated inventory value to the ledger, and give you how far they are out on a month by month basis. It uses the same code as the back dated inventory value report and thus can not be used for accounting purposes either.  This report is designed to compare a back dated inventory value to the ledger, and give you how far they are out on a month by month basis. It uses the same code as the back dated inventory value report and thus can not be used for accounting purposes either. 
- 
-==== Special Reporting ==== 
-There is an external report outside System Five that is designed to help identify discrepancies in inventory value. It requires a starting point (ex: one of the month end backups). And can help break down and find out why inventory is no longer reconciling. It is not yet ready for use. It is a report that can be ran by our support team, to help in these types of scenarios where through some sort of process you keep going out. When we discover discrepancies they are almost always due to some process that happens that can cause an outage. The goal is to make it easier to find these scenarios.  
- 
-NOTE: This report may be discontinued at any time once released. My goal is to have it replaced with tools within System Five. 
  
  
faq/inventory_reconciliation.txt · Last modified: 2021/09/03 16:50 (3 years ago) by jbalasabas