Inventory reconciliation for companies using production orders is not complete without discussing production order work-in-process (WIP). Flushing methods can impact when entries are made to WIP as can subcontract purchase orders. The following flow is based on manual flushing. Consumptions against a production order add dollars to WIP (debit for Read more…
First thought, is ‘how can a date be abnormal?’ A date is a date, right? Well, the point is that it’s abnormal to have an invoice date on a purchase order before the receipt date of the product. Okay, I realize that for many of us this is not true, Read more…
First, I tell you that you might have abnormal dates and now I’m saying that your purchase orders can cause an out of balance issue. You’re probably thinking what? How? Let’s think through this flow: PO has quantity and unit cost on each line Purchase Order Receipt – creates an Read more…
The most common reaction I see, when telling someone that your out of balance issue is related to Adjust Cost is, “but I have Automatic Cost Posting turned. and with Automatic Cost Posting, I thought it took care of Adjust Cost and you didn’t have to run manually.” What does Read more…
When someone inquires as to how to reconcile their inventory to the general ledger or someone complains ‘my inventory does not tie to my general ledger’, my first response is a question……What report are you using to do your reconciliation? The majority of the time, the answer is ‘Inventory Valuation.’ Read more…
Inventory posting groups control the balance sheet portion on entries relating to inventory. When inventory posting groups do not ‘line up’ to the desired group of items, it typically points to a change on the item card without an associated change in the general ledger. In more drastic out of Read more…
We always talk about the importance of posting setups; no where is it as important as when it comes to subledger reconciliations. There are two posting setups that are important related to inventory subledger reconciliation – inventory posting setup and general posting setup. Inventory posting groups combine with location code Read more…
What is direct posting? It’s a toggle/flag/checkbox on a general ledger account card. What does it do, you ask? It controls whether you can use the specific general ledger account in postings. And by that, I mean that you cannot manually enter the account in journals or on documents. Why Read more…
There are a handful of concepts intricately connected and are an absolute must for understanding how inventory transaction flows throughout the system, what is affected and how the subledger is connected to the general ledger. Posting an inventory transaction has three important pieces. 1) To track quantity, records are posted Read more…
For the past several years, I’ve presented sessions on Reconciling Inventory to the GL for Dynamics NAV and Business Central at various events such as Focus, Summit, Directions, All-Star webinars and others. With over 26 years working in BC/NAV and helping numerous customers reconcile inventory to the general ledger, my Read more…