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Evo-ERP and DBA Classic >> Items >> Inventory Value
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Message started by ASIMedicalJR on 03/02/09 at 10:13:36

Title: Inventory Value
Post by ASIMedicalJR on 03/02/09 at 10:13:36

Is it safe to compare the inventory value report in Items-IN-F with financial statements? Meaning, should the grand total on inventory value report match the inventory GL balance on financial statements? In my case we are off by quite a large dollar amount. So I am trying to figure out if something is processing wrong in our system to cause this or if these numbers have no relation??

Thanks,
Jamie :)

Title: Re: Inventory Value
Post by Kelloggs on 03/02/09 at 11:51:13

We do that every month. It is like the AP or AR Reconciliation.

You should run the 2 following utilities: SM-J-C and UT-K-G

Regards,

Kelloggs

Title: Re: Inventory Value
Post by Dawn on 03/03/09 at 14:00:52

I highly recomend you make a copy of your company and then do SM-J-C under that test. I have run SM-J-C and it rebuilds the information and then replaces it. When I do comparison between test and real company it is not even close. I never use SM-J-C for that reason. I generally back track the GL entries thru cogs and wip if its off by a lot.

Title: Re: Inventory Value
Post by JNAPIER on 03/04/09 at 14:00:01

If you are looking at the Average costed value in IN-F it will be off from the GL. Standard cost from IN-F is much more useful. How often do you UPDATE STANDARD COSTS and ROLLUP BOM'S? Not doing these and having price increases in raw costs will have the GL HIGHER than printed.

John

Title: Re: Inventory Value
Post by hattox on 03/04/09 at 17:02:17

Jamie,
I always run the inventory value, and the inventory list (with standard cost) Then, I add the "UNITS ON HAND" from the inventory value report to the inventory list (in Excel). Then, add a couple of columns to the inventory list, and multiply the standard cost by units on hand, and multiply the last cost by units on hand in the two added columns (Total Standard, and Total Last). When I have a large difference, I compare the standard cost to the last cost, to find out where my differences are. I have never used the average cost in DBA or EVO, because I don't like the way it is calculated.

Darlene

Title: Re: Inventory Value
Post by cathyh on 03/09/09 at 10:18:14

JNAPIER wrote:

IN-F does not show "Standard cost" in only shows "Avg cost X units on hand" and "Book Value" which can be different.

Since our accountant insists on having backup for the asset accounts at the end of the year we have set up the practice of making sure they match every month.

I run IN-F by GL account every month and match it to the GL account and am usually only off by less than $50 in each of my asset accounts, and sometime just pennies. We run SM-J-C first using the transaction type "B" which assumes the transactions are correct but for some reason the location qty on hand is wrong. Then we always run UT-K-G to fix book value. This procedure is working very well for us--

We use standard cost as a comparison point only, and always issue at average and finish at actual. We usually receive PO's at the last cost (what's entered on the PO) and if there is a price increase (that our vendor didn't let us know about when the PO was submitted!!) it doesn't show up until the receipt is invoiced -- this can cause differences if many of the part number are used in between receipt and invoice. The products we produce are rarely in inventory for long since we usually build a high ticket item one at a time and ship almost immediately. We have sales order release set to not allow shipment of an item unless we have it in stock, and although we are allowed to issue a part to a work order even if we don' t have them we rarely do. Going negative with average cost can really mess with the cost.

Title: Re: Inventory Value
Post by Lynn_Pantic on 03/10/09 at 08:42:10

Cathy's approach is reasonable. GL and Standard Cost will only agree if you are set up to use Standard Costing as your costing method. If the total Book Value on IN-F and the GL are off by a significant amount, something is not set up right or you are not processing things properly. Taking on-hand inventory negative is one culprit, as is the inappropriate use of type N part numbers. Also check the item classes as they control the GL Posting.