The 3 main problems we've had with this are: 1: Stuff getting stuck in the review journal for whatever reason after a capture COS/WIP 2: Post Cost of Sales/MFG variance not being checked on the capture COS/WIP 3: Parts with missing or incorrect group/class gl codes.
We have a very large difference between our Stock Status report and our GL Inventory account.
We have been hunting for the reason but haven’t found a cause yet.
On top of that, we are not sure when this problem arose. We were not reconciling the inventory account to the stock status.
Ignoring the issues with that, does anyone have any pointers with trying to figure out where the discrepancy is coming from?
Joe Rojas | Director of Information Technology | Mats Inc
dir: 781-573-0291 | cell: 781-408-9278 | fax: 781-232-5191
addr: 179 Campanelli Pkwy | Stoughton | MA | 02072-3734
jrojas@... | www.matsinc.com
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Since the GL Inventory account balance is the result of all activity for a month, I would go back to the last time the GL account and the stock status report reconciled and then go forward each month to identify the month in which they no longer reconciled. Then go through the WIP Reconciliation report for the out of balance month and start tracking the debit and credits through the GL inventory account to isolate what is causing the GL account balance to be incorrect. Don't forget to check the GL account used by the reason codes for: DMR and Inventory adjustments. If any reason code incorrectly uses the GL inventory account this would easily cause a large variance between the account balance and the stock status report.
Also, you will need to look at the stock status report and ensure you are including non-stock parts, and are accounting for the impact of Negative on-hand balances (if you allow that) and look at the effect of Non-Nettable Quantities.
Unfortunately, If you have not reconciled the GL inventory account and the stock status report recently, this could be a massive project.
Lastly, if the variance is small and you are sure that the stock status report is correct, then accounting can create an adjusting entry to correct the GL account balance of the inventory account and then put in place a monthly process to ensure the GL and the stock status report reconcile.