Inventory Closing voucher related to ended projects

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Posted on by Hussien Ahmed

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Hi All

We have problem when we run inventory closing system create adjustment for items and transactions related to ended projects . the amount of the adjustment appear in the GL and also appear in the project item cost but when we run the creation of the estimation system does not create estimation for the amount of the adjustment for the ended projects and according to that we have difference between what we have in GL and what we have in estimated sheet for the month. (We do inventory closing every month and we do Hard closing every 3 months and the problem related to ended projects for 6 months and more)

- Is it correct for the system to do inventory adjustment for ended projects when we run inventory closing ?

- How we can prevent the system from adjust ended projects when running inventory closing ?

- If we do a hard closing does the system will be able to adjust transactions for closed periods as what is happening now in ended projects?

Thanks

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Ludwig Reinhard Microsoft Employee on at

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RE: Inventory Closing voucher related to ended projects

Hello Hussien Ahmed,

For Q1:

If you use an inventory costing method that is different from standard costing or moving average then you can see subsequent cost adjustments that are caused by inventory closes.

For Q2:

If you use an actual costing method (weighted average, fifo, etc.) then the only thing that you can do is checking that all PO invoices and inventory transactions are posted on time, i.e. as soon as possible. When running the inventory close you can check open quantities and large price variances (step 1 and step 2 of the closing procedure). Those checks will help you to minimize those adjustments.

For Q3:

If you run an inventory close adjustments might be posted. also for your projects. Not sure what you mean by 'hard' close

Best regards,

Ludwig