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Evo-ERP and DBA Classic >> Accounting >> Finished goods inv won't trans to COGS
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Message started by fstickel on 12/14/06 at 09:37:03

Title: Finished goods inv won't trans to COGS
Post by fstickel on 12/14/06 at 09:37:03

We have a multi-level job which was inadvertently closed and invoiced before the final work orders had been closed. The SO is closed and the Sales was credited. Now the work orders have been closed but the rolled up costs of the parent work order are still in Finished Goods.

How do I move the finished goods inventory costs to COGS on this closed SO?

Title: Re: Finished goods inv won't trans to COGS
Post by cathyh on 12/14/06 at 13:57:39

I would do a S type(shipping) adjustment in IN-C. It lets you reference a SO or Invoice number and customer. Just remember that a S type adjustment is a positive number, not a negative number like a regular A type.

Title: Re: Finished goods inv won't trans to COGS
Post by Lynn_Pantic on 12/14/06 at 15:59:48

If you are just talking about dollars on the GL, make a Journal Entry and run UT-K-G.

Title: Re: Finished goods inv won't trans to COGS
Post by cathyh on 12/15/06 at 08:34:31

Yes my reply was only if the Finished Goods you are talking about is your FG inventory, not your GL account.

Title: Re: Finished goods inv won't trans to COGS
Post by fstickel on 12/15/06 at 15:19:38

So, as I understand it, IN-C would only change the Finished Goods Inventory but not the Cost of Goods Sold.

And I am understanding the other suggestion by Lynn is to do a journal entry (GL-B) with a debit to COGS and a credit to FG Inv. I am guessing I would need to post that transaction in the period when the SO was closed. Then when I run UT-K-D, it will recalculate the amounts in the GL chart of accounts correcting my financial statements.

Title: Re: Finished goods inv won't trans to COGS
Post by Lynn_Pantic on 12/15/06 at 18:35:25

I think You are making it more difficult than it is.

IN-C will hit both Inventory and GL. But I suspect you have the following situation (simplified perhaps):

Ship items before WO-I so COGS of shipment is 0 and inventory goes negative. Then WO-I and add items to FG Stock at correct cost.

UOH is now correct but Book Value and GL is off. UT-K-G and a Journal Entry will fix it.