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Evo-ERP and DBA Classic >> Accounting >> BOOK TO PHYSICAL DIFF
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Message started by lynnkissinger on 11/08/07 at 15:22:03

Title: BOOK TO PHYSICAL DIFF
Post by lynnkissinger on 11/08/07 at 15:22:03

When I compare my inventory gl acct #'s to my inventory value report, the numbers do not equal. The net effect is equal, but the sub categories are not. How do I correct?

Title: Re: BOOK TO PHYSICAL DIFF
Post by David Waldmann on 11/09/07 at 05:10:57

lynnkissinger wrote:

The net effect is equal.

Wow. I have NEVER had the GL balance to the book value. Sometimes it's close (within $100), sometimes it's waaaay off.

I enter a GL-B transaction, debiting or crediting the Inventory accounts as required to make them balance, and the rest to a "Inventory Adjustments" account I created.

Title: Re: BOOK TO PHYSICAL DIFF
Post by cathyh on 11/09/07 at 08:53:05

We balance our GL accounts for inventory with the value reports every month. We are seldom off by more than $30 total for our 5 accounts.
Do you print your Value report by GL account? This is the only way to get a total that will match the GL account you are looking at.
As far as the accounts not matching the value report if you are printing by GL account, you may have some non counted (type N) parts that use a counted part class code. The transactions hit the GL in but the part will not show up on your value report because there is no on hand quantity maintained for N types. Another reason I have found that the accounts don't match is if for some reason you issue or make adjustments or receive a PO at $0 cost otherwise incorrect cost ( for instance if you go negative the average cost can be off for the issue process).
I am sure there are other reasons why the accounts would not match, I just can't think of them.
Hope this helps.

Title: Re: BOOK TO PHYSICAL DIFF
Post by lmk223a on 11/13/07 at 06:57:49

lynnkissinger wrote:

When I compare my inventory gl acct #'s to my inventory value report, the numbers do not equal. The net effect is equal, but the sub categories are not. How do I correct?

I set up an expense account called Inventory Variation and create a journal entry that will charge the GL account for inventory and offset the transaction to Inventory Variation. If the net effect is equal, this will accomplish correcting the inventory GL balances, and the net effect will be shown in Inventory Variation Account.

Also, yes, David, I also reconcile IN-F to GL type for inventory every month. Finished goods is usually within cents; raw material is minimal, the only sizeable differences reside in WIP material. WIP material variation is almost always offsest by WIP Labor variation, because I separate WIP between its components: labor, load and material, via EXCEL spreadsheet using EVO monthly labor (JC-C), and entries to finished goods, JC-Q, to evaluate remaining WIP Labor $.

AFTERNOTE: we also have a few educated EVO users which helps reduce variation, so that inventory transactions are entered properly.