Differences between Inventory and GL

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Posted on by MSOBKY

Hi,

I have customer work on GP 2010 which have Issue in two warehouses and that the smart list for Inventory, Financial and Warehouse Account summery provide with same values and the Inventory reports which related to activity (standard and customized ) provide with different value per period.

they use FIFO Periodic

although we check all transaction posted and related to inventory and matched with GL in smart list and they didn't make any change in their cost also we conduct check links

other warehouses is working well without any Differences

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Ken Roy 490 on at

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RE: Differences between Inventory and GL

Thank you for the reply Leslie. I understand what you mean now. Yes, we use a Purchase Price Variance account (PPV) that records the difference from Current Cost (received cost) and Standard Cost.
L Vail 65,271 on at

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RE: Differences between Inventory and GL

When inventory is received, what are the distributions?
MSOBKY 84 on at

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RE: Differences between Inventory and GL

they haven't account to handle the variance between the current and the standard cost and I'm talking with them to create it at least for the future
L Vail 65,271 on at

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RE: Differences between Inventory and GL

Ken, thank you for your kind words. What I was thinking is that if you use a Periodic method, that means you are using Standard Cost for your COGS value. The entry would debit cost of goods sold for the standard cost and credit inventory for the standard cost. The item went into your inventory at actual cost, but it's coming out at standard cost. You can adjust your posting so that you always know the difference, but I do not know if you've done that. It sounds like you have. Do you have a variance account someplace that records the difference between standard and actual cost?

Leslie
Ken Roy 490 on at

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RE: Differences between Inventory and GL

Hi Leslie,

I'm curious as to why you expect them not to balance. My CPA has been requiring me to show they balance every month for a long time. The only time they don't balance is when there has been a posting error or some other abnormality. I have always posted and balanced on a daily basis just to make the troubleshooting easier when an error comes up. This happens maybe twice a year but it's tough to find. I will admit that my Finished Goods Inventory creeps up about ~$0.05 per day. I was told by my partner it's because we use 4 decimal costing and it's a rounding issue. Maybe that's not right? I don't know. This is on quite a few millions of dollars in inventory daily.

I print the Stock Status for Raw Material and Finished Goods. Then I print the Trial Balance Summary for the corresponding GL codes. Plug them into Excel and they match. If not, I go figure out why.

I respect your opinion on all things GP so how should I be doing this?
L Vail 65,271 on at

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RE: Differences between Inventory and GL

Hi,

I wouldn't expect your GL Inventory to balance your stock status report. With FIFO Periodic, inventory is increased by actual cost, but it is decremented by standard cost. You can set your posting accounts to keep track of this difference, is that what you have done?

Leslie
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Redbeard 12,931 on at

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RE: Differences between Inventory and GL

Beat is giving some good advice here. The reference to Mahmoud's article is a good place to start. We had a tough situation a few years back, and I wound up writing the following blog article about the issue. It covers how to identify inconsistencies and what resolutions we used to clean them up. The Reconcile was the first step in the process:

redbeardblogging.blogspot.com/.../hitb-quanity-on-hand-vs-inventory.html
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Beat Bucher GP Gee... 28,058 Moderator on at

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RE: Differences between Inventory and GL

Have you checked out this thread ?

community.dynamics.com/.../110575

HSS & HITB are 2 different ways of getting your inventory value, but one might be inaccurate against the GL TB..
MSOBKY 84 on at

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RE: Differences between Inventory and GL

Financial Trial Balance is equal with the GL in inquiry, smart list but not equal with the inventory reports-Activity-such as Historical Stock Status
Rosemary 10 on at

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RE: Differences between Inventory and GL

Hi,

If the Reconcile didn't highlight anything, just a couple of questions, did they run a Financial Trial Balance and match what is there with the sub ledger?

Is there a Historical Inventory Trial Balance in GP 2010?

From what you said, there is an account for the warehouse?

In terms of operations what is different with the warehouse that balances compared with the ones that doesn't?

Regards,

Rosemary