The totals on the Inventory Valuation reports do not match the G/L account balances for all inventory accounts.
Solution ID = KB-351
Goal : The totals on the inventory valuation reports do not match the G/L account balances for all inventory accounts. Inventory reports do not match GL.
Version = All Version
Module : SLMFG
Fact : INV
Database : Progress, SQL
Fix
| The totals on the Inventory Valuation reports do not match the G/L account balances for all inventory accounts. |
| There
are several reports in the inventory module which display the value of
the quantity on hand. These can all be found on the "Item Cost / Price
Reports" menu. In theory, the grand totals on these reports should
match the balances in the inventory accounts in G/L provided: 1) The reports are run without entering options which prevent any item, warehouse or location from being processed. 2) No one is entering transactions in the manufacturing modules while the report(s) is being printed and the G/L balance is determined. 3) You consider all dollars in G/L for the inventory accounts. This means accumulating the ledger balance plus any dollars in all distribution journals for each account. Note: You cannot run any of the inventory valuation reports "as of" a specific date. They all process the quantities and costs that exist in inventory at the time the report is run. If these guidelines have been followed and the totals on the report does not match the G/L balance, the following are possible reasons: 1) Putting an inventory account in an account field ANYWHERE in the system other than on the product code inventory account fields or an item stock location. This includes PO line items for non-item master items, the Inventory Adjustment account field in the product code, manual journal entries, et al. Dollars that went into inventory accounts used in any of these ways would be in the G/L balances but not on the inventory valuation reports. If you are using a Progress version of Syteline (SL6 or lower) see solution 2003Syteline17414 for a more detailed explanation and a utility that will search for item location accounts being used other places. 2) Using a non-inventory account on a item stock location (e.g. an expense account). The inventory valuation reports simply extend quantity by cost for all on hand quantities and are not concerned with what accounts are used on the stock locations. Therefore, the value of any inventory which is in an account that is not considered an inventory account would be on the valuation reports but would not be in the G/L total if you are just gathering them for inventory accounts. Reviewing the Inventory Value by Account report closely should identify this situation. 3) Never having them in sync when you implemented the system. If you did not carefully cut over the inventory quantities and cost and your G/L account balances, it is possible that inventory and G/L have never balanced in Syteline of course, if they balanced at one time and now do not, this is not a the source of the problem. 4) Problems with the inventory cost data. The inventory valuation reports will possibly be wrong if you are have items for which the breakdown of its unit cost in its costing data does not add up to the unit cost. The most common reason for this is improper data importation. If you are using a Progress version of Syteline (SL6 or lower) see solution 2003Syteline2839 for a utility which will output any cost data where the detail breakout doesn't match the total unit cost. 5) For a LIFO or FIFO costed item. the quantities in the LIFO/FIFO stacks are not in sync with the item's quantity on hand. If you are using a Progress version of Syteline (SL6 or lower) see solution 2003Syteline15050 for a utility that will determine if you have this problem. 6) The system not properly adjusting data when an item's Cost Type or Method is changed. Though rare, from time to time a bug is discovered in the application where the system is not properly handling the changing of cost types or methods which can lead to the inventory reports would be out of sync with G/L after the change. If you know you have made such changes, you search for reported problems.in the Known Issues area of the support web page or contact MAPICS support. 7) Entering an inventory account for the offsetting account when entering a miscellaneous issue or receipt. The location account will be either credited or debited and the inventory adjustment account will be the default offsetting account. If you enter an inventory account instead, the dollars will still be on the inventory reports (or off of them) but the transaction would have zero affect on G/L. 8) Entering an inventory account for the offsetting account to WIP when issuing a non-item master item to a job. When entering such a transaction, you are prompted for an "Other Account" which is the offsetting credit for the debit to WIP. If you enter an inventory account, GL will be reduced but it will have no impact on the inventory reports. 9) For a standard costed item, a pending job labor transaction was created when a job transaction was posted that moved the item into inventory and someone deleted the pending transaction rather than correcting the problem and posting it. When a pending transaction is created, the pieces are moved into inventory but no costing is done at that time (job WIP is not updated, no journal transactions that credit WIP and debit inventory are created, etc.). The costing takes place when the pending transaction is corrected and posted so if the pending transaction has not been corrected and posted, the job costing has not taken place. If the item is standard costed, that will cause an imbalance between inventory and GL. The inventory reports will value the quantity at the item's standard cost but there will be no value in the GL inventory account balances for those pieces. You should first check to see if any transactions exist on the pending job labor screen. If so, they should be corrected and posted. If not, it's certainly possible that one or more existed but that someone manually deleted them rather than correcting and posting them. If you are using a Progress version of Syteline you can run the support utility in solution 2003Syteline17413 to help determine if that may have occurred. If any transactions are found and the item is standard costed, that may explain the imbalance. The corrective action would then be to make manual journal entries which debit the item's inventory accounts and credit routing variance (the account that would have been hit when the job was closed). The amounts used should be the quantity in the transaction extended by the components of the item's standard cost (material, labor, fixed overhead, etc.) seen on the cost maintenance tab. Summary Even if the cause can be determined, the only way to get them back in sync may be to make manual journal entries in a non-distribution journal to the inventory accounts which are off. The Total Inventory Value by Account report can be used to determine which accounts do not match GL balances and by how much.. |
