Inventory recalculation causing difference between inventory Value and GL Account

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Posted on by Ruben Heinrich

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Hi All,

A Customer contacted us with a Problem. They have a significant difference between inventory value and corresponding gl account.

i tracked it down and got to the Point where i could find the origin of that difference.

in may they did a inventory recalculation, and the sum of the adjustment postings exactly matched the difference between inv value and gl account Balance.

Strangely they reversed the recalculation once and redid it. Now i reversed all of the recalculations back to may, including the one in question and yet we still have the different values.

All the recalculations were as of May 31st. For May 30th, inventory value report and gl account Balance STILL SHOW THE SAME AMOUNT!!!

what could be the reason for it? configuration issue?

best regards.

ruben

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André Arnaud de Cal... 301,025 Super User 2025 Season 2 on at

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Hi Ruben,

It could be indeed a configuration issue. Can you tell how the item model groups are setup (namely the costing model and if you enabled to include physical inventory in the cost)?

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Ruben Heinrich 641 on at

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Hi All,

further Details and Screenshots.

SC1

SC2 a - General Ledger Balance

SC2 b - Inventory Value - NOTICE there are some items with inventory amount = "0" and value != "0" how is this possible?

SC3- Notice how this is exactly the difference between account Balance and invent value report

SC4 Inventory Model Group

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Ludwig Reinhard Microsoft Employee on at

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Hi Ruben Heinrich,

The screenprint above shows that you also post physical inventory. What is the total inventory value that your inventory value report shows?

Is ledger account 1010 the only automatic inventory account that is setup in the inventory posting matrix or can there be other accounts that hold the difference?

If account 1010 is the only inventory account used, can you analyze the transactions in order to ensure that none of the accountants already posted a manual adjustment at the GL level on that account.

Have all your items a financial item dimension setup? If that is the case you can run the trial balance by account & financial dimension and quickly identify the item that causes the problem.

Best regards,

Ludwig

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guk1964 10,888 on at

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The error message gives a big clue - that the configuration of the model group was changed after the posting.

So with no physical value and financial allowed to go negative zero costs certainly possible

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Ruben Heinrich 641 on at

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Hi Ludwig,

1010 is the only account used for the particular item Group so the inventory value Report as well as the Balance are 100% related to one another. i ve checked all the physical Transactions. thats where i found the source of error to be the RECALCULATION. This makes it very hard to correct, and hard to track the actual error in the process, because the recalculation does some 100 Transactions as i am sure you know.

@Magic. Yea i know that some reserved, and not yet received items could cause a negative cost, but after all at some Point item value and GL Balance should match up, shouldn it :D ?

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Ludwig Reinhard Microsoft Employee on at

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Hi Ruben,

And you are sure that none of the accountants manually posted the difference on account 1010?

I have not heard that the inventory closing process causes a variance between GL and inventory. Yet, on LCS there seems to be a hotfix that seems to describe such a scenario (KB2898579) unfortunately not for the FIFO valuation method you use.

Probably try to debug the issue with the help of a developer and/or get the MS support involved if you can't find the underlying issue yourself.

Best regards,

Ludwig

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Ludwig Reinhard Microsoft Employee on at

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Hi Ruben,

One more question, can you share the voucher & the transaction origin of the voucher that was created when running the inventory close?

Best regards,

Ludwig

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André Arnaud de Cal... 301,025 Super User 2025 Season 2 on at

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HI Ruben,

Magic1949 might be correct here. The report is showing that the Financial inventory setting was changes (thus enabled) after posting the transactions. So there are no ledger transactions created during several postings. You can check this by searching for ledger transactions related to e.g. the production lines as listed on the report. If you can find transactions, they are certainly not posted on your inventory accounts.

If there are no ledger transactions created, then this is the source of the differences. Or the financial inventory is always disabled on the model group or always enabled, but don't change the setting when there are already transactions.

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Ruben Heinrich 641 on at

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Hi Ludwig

just to clarify, we re not talking about an inventory CLOSE, only a recalculation, the Close is only done at the end of the year (by customers choice) , as i mentioned the recalculation was done 4 times, and reversed 4 times, the last voucher (LRB0000116) is done by myself.

We have opened a case with Microsoft, we re talking AX2012 R2 !!!

as you see, the origin of Transaction is simply a whole load of revaluations.

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Ruben Heinrich 641 on at

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So, i have now found the Problem. I exported the Report for Adjustments and filtered for the day in Question, and Cancelled = false. There were 3 recalculation voucher id's which did not exist in the System, there were deleted manually (AOT or Database)

see how *84-*86 are missing? But in the AOT Table inventSettlement, the records STILL EXIST and did not have the Checkbox "Cancelled" marked.

By the Looks of it, a former Partner of our Customer somehow deleted those vouchers as a work around, when the customer had a Problem closing the recalculation.

We are working with Microsoft on a clean and effective way to reverse thoose 3 vouchers.

Ludwig Reinhard do you have suggestions how to correct this in regards to best german finance practices ? :)

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