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110We are encountering a puzzling situation when we receive standard cost items directly into GP versus when the item is received through our 3rd party warehouse management system. We do not believe the WMS is the cause because it only deals with quantities, not costs. The receipt is uploaded as receiving transaction into a receiving batch in GP. The situation occurs at the point where the receiving transaction is created.
When a standard cost item is received in GP- The inventory is valued at the item’s standard cost; not the PO cost. This difference between the PO cost and the standard cost is recorded in the Unrealized PO Variance bucket in the GL. When the receipt is vouchered, the amount in the unrealized PO variance bucket is credited and a PO variance is created in the amount equal to the difference between purchased cost and standard cost and is recorded in the PO Variance bucket in the GL. This means if what we pay for the item is actually the same amount as the standard cost, then no variance occurs. However, if what we pay for is different than the standard cost, there is a PO variance.
When a standard cost item is received in Accellos (our WMS) and then uploaded and posted in GP - example: 16 EA of item 117983 was received in our WMS. The difference between the PO cost ($8.75/EA) and the standard cost ($5.25/EA) should have created an unrealized PO variance = $56.03, ($8.75-$5.25 * 16). The distributions should have recorded in the GL with only $83.97 recording into inventory and $56.03 into unrealized PO variance. However, the entire PO cost ($140) was recorded to our inventory GL. Since the inventory is valued at standard cost in the Inventory subledger, we now have a GL/subledger discrepancy that will never go away until we manual adjust it. Vouchering of this receipt may or may not create a variance depending on if the cost on the PO is the purchased cost. The problem remains that the inventory is being recorded at PO (or purchased) cost NOT the standard cost. The bottom line is that this is causing a reconciling issue between the GL and the inventory detail.
When we capture the debugging log when the receiving transaction is created, two lines stand out:
OSRC_Receiving_and_Invoicing_ItemNumber_BEFORE()
OSRC_POP_Receipt_Function_SaveLine_BEFORE()
We have found a description of the SaveLine trigger being called from the MFG dictionary.
“Function overwrites the PPV (Purchase Price Variance) account on an invoice
line with the WIP account used for outsourcing.”
“Usage: Used when the invoice line is linked to an MO for outsourcing, and the
MO is not closed. This function is a trigger on function SaveLine of form
POP_Receipt so it has all the same parameters as that function.”
All of our standard cost stock numbers are mfg items. However, we don’t think this function is overwriting the variance with the WIP account because we would be seeing that in the receipt distributions. It seems like its just ignoring the variance all together.
We are looking for any insight as to why this is happening.
Thanks.
Don Plum
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