Cleaning A/P Clearing Account for PPV

Yahoo Archive
1
Craig

I believe it only creates the additional ADJ-CST for FIFO costed items. It does not correct the inventory for Average costed items and the ADJ-CST does not get created?
If you want to discuss this in more detail feel free to email me directly

Gary





Gary Parfrey | Managing Director


Mobile: +44 7765 234 934
DDI: +44 121 314 1172
Main: +44 121 314 1170


Dot Net IT Limited, One St Kenelm Court, Steel Park Road, Halesowen, B62 8HD, United Kingdom.



This e-mail and any files transmitted with it are confidential and are intended solely for the use of the intended recipient(s). If you are not the intended recipient, you must not copy, distribute or take any action based on this communication. If you have received this communication in error please contact GaryP@...<mailto:GaryP@...> and delete this communication and any copies of it. Any views or opinions presented are soley of those of the author and do not necessarily represent those of Dot Net IT Limited.


Dot Net IT Limited, Reg No 4412519

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of Gary Parfrey
Sent: 18 April 2012 14:38
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Re: Cleaning A/P Clearing Account for PPV



Craig

To clarify with average costing the following transactions happen with standard posting rules

Process the receipt (This averages and changes inventory costs)
PUR-STK Receipt 100 USD
Dr Cr
Inventory 100
GRNI 100

Match the Invoice to the receipt
Invoice 105 USD
Dr Cr
GRNI 105
Payables 105

The system then creates a cost transaction for the variance
ADJ-PUR
Dr Cr
PPV 5
GRNI 5

What Epicor have added to the posting rules in later versions of Epicor, and what I think you and the help is alluding to is an automated ADJ-CST transaction which process at the same time as you post the invoice and the ADJ-PUR is created. This corrects your inventory
ADJ-CST
Dr Cr
Inventory 5
PPV 5

Note:
If the original receipt was PUR-MTL or PUR-SUB you would get only the one ADJ-PUR transaction
Dr Cr
WIP 5
GRNI 5

Regards

Gary










Gary Parfrey | Managing Director


Mobile: +44 7765 234 934
DDI: +44 121 314 1172
Main: +44 121 314 1170


Dot Net IT Limited, One St Kenelm Court, Steel Park Road, Halesowen, B62 8HD, United Kingdom.



This e-mail and any files transmitted with it are confidential and are intended solely for the use of the intended recipient(s). If you are not the intended recipient, you must not copy, distribute or take any action based on this communication. If you have received this communication in error please contact GaryP@...<mailto:GaryP%40dotnetit.co.uk><mailto:GaryP@...<mailto:GaryP%40dotnetit.co.uk>> and delete this communication and any copies of it. Any views or opinions presented are soley of those of the author and do not necessarily represent those of Dot Net IT Limited.


Dot Net IT Limited, Reg No 4412519

From: vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com><mailto:vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>> [mailto:vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>]<mailto:[mailto:vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>]> On Behalf Of craig_4414
Sent: 18 April 2012 00:00
To: vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com><mailto:vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>>
Subject: [Vantage] Re: Cleaning A/P Clearing Account for PPV



Allow me to clarify.

We are using average cost.

In standard cost the value posted to inventory does not change. But in average cost it will. We tracked a transaction through EPICOR. I can also dig up the page in the manual (it's at home) if you'd like (and send instructions how to upload a pdf file).

Thanks

--- In vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com><mailto:vantage%40yahoogroups.com>, Gary Parfrey <garyp@...<mailto:garyp@...<mailto:garyp@...%3cmailto:garyp@...>>> wrote:
>
> Craig
>
> The variance does not get posted to inventory but it gets posted to the clearing account via a ADJ-PUR cost transaction
> It the receipt was received to a job rather than inventory it posts to WIP rather than the Variance account
>
> Inventory does not get updated at all during this variance process. You would have to adjust inventory manually or delete the receipt, change the PO to invoice cost, then rereceipt to stop the variance from occurring
>
> Gary
>
>
>
>
> Gary Parfrey | Managing Director
>
>
> Mobile: +44 7765 234 934
> DDI: +44 121 314 1172
> Main: +44 121 314 1170
>
>
> Dot Net IT Limited, One St Kenelm Court, Steel Park Road, Halesowen, B62 8HD, United Kingdom.
>
>
>
> This e-mail and any files transmitted with it are confidential and are intended solely for the use of the intended recipient(s). If you are not the intended recipient, you must not copy, distribute or take any action based on this communication. If you have received this communication in error please contact GaryP@...<mailto:GaryP@<mailto:GaryP@...%3cmailto:GaryP@<mailto:GaryP@...%3cmailto:GaryP@%3cmailto:GaryP@...%3cmailto:GaryP@>>...> and delete this communication and any copies of it. Any views or opinions presented are soley of those of the author and do not necessarily represent those of Dot Net IT Limited.
>
>
> Dot Net IT Limited, Reg No 4412519
>
> From: vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com><mailto:vantage%40yahoogroups.com> [mailto:vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com><mailto:vantage%40yahoogroups.com>] On Behalf Of craig_4414
> Sent: 17 April 2012 20:38
> To: vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com><mailto:vantage%40yahoogroups.com>
> Subject: [Vantage] Cleaning A/P Clearing Account for PPV
>
>
>
> Let's assume the following:
>
> PO Unit Price $1.00
> Invoice Price $1.05
>
> I tracked through the system and I believe the journal entries are such:
>
> Inventory Receipt:
> Inventory $1.00
> A/P Clearing $1.00
>
> Post Invoice:
> A/P Clearing $1.05
> A/P $1.05
>
> Inventory $0.05
> PPV $0.05
>
> My headache is now I have $0.05 debit left in A/P Clearing. How does that get cleared out? Does it stay there forever?
>
> Thank you
>
> Craig Canter
> Controller
> Colony, Inc
>
>
>
> [Non-text portions of this message have been removed]
>


[Non-text portions of this message have been removed]



[Non-text portions of this message have been removed]
2
Let's assume the following:

PO Unit Price $1.00
Invoice Price $1.05

I tracked through the system and I believe the journal entries are such:

Inventory Receipt:
Inventory $1.00
A/P Clearing $1.00

Post Invoice:
A/P Clearing $1.05
A/P $1.05

Inventory $0.05
PPV $0.05

My headache is now I have $0.05 debit left in A/P Clearing. How does that get cleared out? Does it stay there forever?

Thank you

Craig Canter
Controller
Colony, Inc
3
Craig

The variance does not get posted to inventory but it gets posted to the clearing account via a ADJ-PUR cost transaction
It the receipt was received to a job rather than inventory it posts to WIP rather than the Variance account

Inventory does not get updated at all during this variance process. You would have to adjust inventory manually or delete the receipt, change the PO to invoice cost, then rereceipt to stop the variance from occurring

Gary




Gary Parfrey | Managing Director


Mobile: +44 7765 234 934
DDI: +44 121 314 1172
Main: +44 121 314 1170


Dot Net IT Limited, One St Kenelm Court, Steel Park Road, Halesowen, B62 8HD, United Kingdom.



This e-mail and any files transmitted with it are confidential and are intended solely for the use of the intended recipient(s). If you are not the intended recipient, you must not copy, distribute or take any action based on this communication. If you have received this communication in error please contact GaryP@...<mailto:GaryP@...> and delete this communication and any copies of it. Any views or opinions presented are soley of those of the author and do not necessarily represent those of Dot Net IT Limited.


Dot Net IT Limited, Reg No 4412519

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of craig_4414
Sent: 17 April 2012 20:38
To: vantage@yahoogroups.com
Subject: [Vantage] Cleaning A/P Clearing Account for PPV



Let's assume the following:

PO Unit Price $1.00
Invoice Price $1.05

I tracked through the system and I believe the journal entries are such:

Inventory Receipt:
Inventory $1.00
A/P Clearing $1.00

Post Invoice:
A/P Clearing $1.05
A/P $1.05

Inventory $0.05
PPV $0.05

My headache is now I have $0.05 debit left in A/P Clearing. How does that get cleared out? Does it stay there forever?

Thank you

Craig Canter
Controller
Colony, Inc



[Non-text portions of this message have been removed]
4
Allow me to clarify.

We are using average cost.

In standard cost the value posted to inventory does not change. But in average cost it will. We tracked a transaction through EPICOR. I can also dig up the page in the manual (it's at home) if you'd like (and send instructions how to upload a pdf file).

Thanks

--- In vantage@yahoogroups.com, Gary Parfrey <garyp@...> wrote:
>
> Craig
>
> The variance does not get posted to inventory but it gets posted to the clearing account via a ADJ-PUR cost transaction
> It the receipt was received to a job rather than inventory it posts to WIP rather than the Variance account
>
> Inventory does not get updated at all during this variance process. You would have to adjust inventory manually or delete the receipt, change the PO to invoice cost, then rereceipt to stop the variance from occurring
>
> Gary
>
>
>
>
> Gary Parfrey | Managing Director
>
>
> Mobile: +44 7765 234 934
> DDI: +44 121 314 1172
> Main: +44 121 314 1170
>
>
> Dot Net IT Limited, One St Kenelm Court, Steel Park Road, Halesowen, B62 8HD, United Kingdom.
>
>
>
> This e-mail and any files transmitted with it are confidential and are intended solely for the use of the intended recipient(s). If you are not the intended recipient, you must not copy, distribute or take any action based on this communication. If you have received this communication in error please contact GaryP@...<mailto:GaryP@...> and delete this communication and any copies of it. Any views or opinions presented are soley of those of the author and do not necessarily represent those of Dot Net IT Limited.
>
>
> Dot Net IT Limited, Reg No 4412519
>
> From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of craig_4414
> Sent: 17 April 2012 20:38
> To: vantage@yahoogroups.com
> Subject: [Vantage] Cleaning A/P Clearing Account for PPV
>
>
>
> Let's assume the following:
>
> PO Unit Price $1.00
> Invoice Price $1.05
>
> I tracked through the system and I believe the journal entries are such:
>
> Inventory Receipt:
> Inventory $1.00
> A/P Clearing $1.00
>
> Post Invoice:
> A/P Clearing $1.05
> A/P $1.05
>
> Inventory $0.05
> PPV $0.05
>
> My headache is now I have $0.05 debit left in A/P Clearing. How does that get cleared out? Does it stay there forever?
>
> Thank you
>
> Craig Canter
> Controller
> Colony, Inc
>
>
>
> [Non-text portions of this message have been removed]
>
5
Craig

To clarify with average costing the following transactions happen with standard posting rules

Process the receipt (This averages and changes inventory costs)
PUR-STK Receipt 100 USD
Dr Cr
Inventory 100
GRNI 100

Match the Invoice to the receipt
Invoice 105 USD
Dr Cr
GRNI 105
Payables 105

The system then creates a cost transaction for the variance
ADJ-PUR
Dr Cr
PPV 5
GRNI 5

What Epicor have added to the posting rules in later versions of Epicor, and what I think you and the help is alluding to is an automated ADJ-CST transaction which process at the same time as you post the invoice and the ADJ-PUR is created. This corrects your inventory
ADJ-CST
Dr Cr
Inventory 5
PPV 5

Note:
If the original receipt was PUR-MTL or PUR-SUB you would get only the one ADJ-PUR transaction
Dr Cr
WIP 5
GRNI 5

Regards

Gary










Gary Parfrey | Managing Director


Mobile: +44 7765 234 934
DDI: +44 121 314 1172
Main: +44 121 314 1170


Dot Net IT Limited, One St Kenelm Court, Steel Park Road, Halesowen, B62 8HD, United Kingdom.



This e-mail and any files transmitted with it are confidential and are intended solely for the use of the intended recipient(s). If you are not the intended recipient, you must not copy, distribute or take any action based on this communication. If you have received this communication in error please contact GaryP@...<mailto:GaryP@...> and delete this communication and any copies of it. Any views or opinions presented are soley of those of the author and do not necessarily represent those of Dot Net IT Limited.


Dot Net IT Limited, Reg No 4412519

From: vantage@yahoogroups.com<mailto:vantage@yahoogroups.com> [mailto:vantage@yahoogroups.com]<mailto:[mailto:vantage@yahoogroups.com]> On Behalf Of craig_4414
Sent: 18 April 2012 00:00
To: vantage@yahoogroups.com<mailto:vantage@yahoogroups.com>
Subject: [Vantage] Re: Cleaning A/P Clearing Account for PPV



Allow me to clarify.

We are using average cost.

In standard cost the value posted to inventory does not change. But in average cost it will. We tracked a transaction through EPICOR. I can also dig up the page in the manual (it's at home) if you'd like (and send instructions how to upload a pdf file).

Thanks

--- In vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>, Gary Parfrey <garyp@...<mailto:garyp@...>> wrote:
>
> Craig
>
> The variance does not get posted to inventory but it gets posted to the clearing account via a ADJ-PUR cost transaction
> It the receipt was received to a job rather than inventory it posts to WIP rather than the Variance account
>
> Inventory does not get updated at all during this variance process. You would have to adjust inventory manually or delete the receipt, change the PO to invoice cost, then rereceipt to stop the variance from occurring
>
> Gary
>
>
>
>
> Gary Parfrey | Managing Director
>
>
> Mobile: +44 7765 234 934
> DDI: +44 121 314 1172
> Main: +44 121 314 1170
>
>
> Dot Net IT Limited, One St Kenelm Court, Steel Park Road, Halesowen, B62 8HD, United Kingdom.
>
>
>
> This e-mail and any files transmitted with it are confidential and are intended solely for the use of the intended recipient(s). If you are not the intended recipient, you must not copy, distribute or take any action based on this communication. If you have received this communication in error please contact GaryP@...<mailto:GaryP@<mailto:GaryP@...%3cmailto:GaryP@>...> and delete this communication and any copies of it. Any views or opinions presented are soley of those of the author and do not necessarily represent those of Dot Net IT Limited.
>
>
> Dot Net IT Limited, Reg No 4412519
>
> From: vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com> [mailto:vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>] On Behalf Of craig_4414
> Sent: 17 April 2012 20:38
> To: vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>
> Subject: [Vantage] Cleaning A/P Clearing Account for PPV
>
>
>
> Let's assume the following:
>
> PO Unit Price $1.00
> Invoice Price $1.05
>
> I tracked through the system and I believe the journal entries are such:
>
> Inventory Receipt:
> Inventory $1.00
> A/P Clearing $1.00
>
> Post Invoice:
> A/P Clearing $1.05
> A/P $1.05
>
> Inventory $0.05
> PPV $0.05
>
> My headache is now I have $0.05 debit left in A/P Clearing. How does that get cleared out? Does it stay there forever?
>
> Thank you
>
> Craig Canter
> Controller
> Colony, Inc
>
>
>
> [Non-text portions of this message have been removed]
>



[Non-text portions of this message have been removed]
6
Craig: What version are you on? If inventory value is changing everytime there are additional/variance costs recorded to a job after parts are received to inventory, I would be concerned. It should not work this way. We also use average costing and what we have seen is that once the parts are received to inventory, Vantage prevents anything from effecting the inventory value. Here's an example: We erroneously received parts into inventory when the raw material had not yet been assigned to the job. In order to keep raw material inventory correct, the material was assigned to the job. Since the parts had already been received into inventory, the entire raw material cost was sent to the variance account. We see the same thing for purchase price variances.


Virginia Joseph
Deep Hole Specialists, LLC
440-708-5239
vjoseph@...


--- In vantage@yahoogroups.com, "craig_4414" <craig_4414@...> wrote:
>
> Allow me to clarify.
>
> We are using average cost.
>
> In standard cost the value posted to inventory does not change. But in average cost it will. We tracked a transaction through EPICOR. I can also dig up the page in the manual (it's at home) if you'd like (and send instructions how to upload a pdf file).
>
> Thanks
>