Inventory Valuation Report v/s Inventory Account differ

Beatrice

Hello,

For the purpose of financial year end reporting, a customer is having a difference between the inventory value shown on the "Inventory valuation" report and the inventory value of the inventory accounts.

Please advise.

Thanks and Regards,

Beatrice.

djswim

Here are a few of the common culprits, I'm sure more people will chime in:

1. Posting setup. If you've set up your inventory posting incorrectly (aka pointed at a non-inventory account) then the numbers aren't making it into your inventory accounts.

2. Posting setup. Opposite of #1, if something else is set to post to an inventory account but shouldn't, this will skew numbers as well.

3. Direct Posting. This is a biggie. If people have access to post directly to your inventory account, then it's possible they've been doing so. Not usually anything malicious, but I've seen this happen a LOT. Basically, any time you have people frequently entering G/L Account lines on documents, you will frequently have troubles like this.

I'm sure there are more, but I'm in the process of fixing my own right now

Alex_Chow

Beatrice wrote:

Hello,

For the purpose of financial year end reporting, a customer is having a difference between the inventory value shown on the "Inventory valuation" report and the inventory value of the inventory accounts.

Please advise.

Thanks and Regards,

Beatrice.

If you ran the adjust cost process, then the inventory valuation report is the right inventory value. The G/L is off. The goal is to tie G/L to the inventory valuation report.

Check your G/L Entries by looking at the Source Code to ensure no direct postings are made, and also check for abnormal posting dates:
http://dynamicsuser.net/blogs/alexchow/ ... dates.aspx

djswim

Ah yes... I forgot about this... "Abnormal Posting Dates" can get even more evil than that if you haven't set up the "Allow Posting To" and "Allow Posting From" values in your GL setup. You can get the example from the blog, but instead of being off by a few months, you can be off by centuries.

I always used to post a few entries to the year 5 and the year 9765 when teaching Intro. to Financials classes... definitely got their attention

Beatrice

Hi,

Thanks for your replies.

I will like to get something clear about the Inventory Valuation report though...

There are items in the Inventory Valuation report with a Negative Quantity, and a Negative Value and Cost Posted to GL, which represents quite a significant amount.

If we need to adjust the Quantity and Value for these items at Financial Year end 30 June 2008 in order to bring the Quantity and Value to zero,
how do we go about?

:-k :-k :-k :-k

Thanks in Advance.

Regards,
Beatrice.

Alex_Chow

Negative inventory are a separate issue. Even if your inventory value is negative, the G/L and inventory valuation report should match up.

Adjust cost process will not help you get rid of negative quantities.