Cost Adjustment not hitting ledger

I did a cost adjustment in our test environment using reason “count discrepancy” which for whatever reason has blank GL Control. I can see the stock status increased but no adjustment was made in the GL.

I checked Company Config default GL Control and the inventory default drives to finished goods and the inv adj drives to the inventory adjustment expense account so I don’t understand why the GL did not get hit by this cost adjustment.

Please advise, as there are parts needing adjustment in the live system and I want to understand what happened these last 6 months while there was no GL Control set for 2 of the 5 reason codes attached to inventory adjustment. Thanks.

GL transactions aren’t created until the Capture COS/WIP process is run.

Use the Inventory WIP Recon report to see the adjustments.

Do you set Inventory Adjustment account from Company’s Inventory COS and WIP GL control the same as Inventory account from Company’s Inventory COS and WIP GL control ?

I am testing in Pilot environment where no other activity is happening and the Inventory WIP Recon for this period errors due to no records.

Regarding GL Control setup for type Inventory COS and WIP…
Inventory is driving to FG Inventory and Inv Adj is driving to Inv Adj account.

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That makes sense, as the WIP Recon report uses the posting engine, and those two transactions had no cost, so no GL Tran would be made. And the other two (that do have a cost) net to zero in the same account.

What costing method is being used?

And you’ve confirmed that Acct 5076-000-000 is active?

My next steps would be to enable the PE Logging, run WIP Recon, then inspect the PE Log.

one more thing or two…

When you say “blank” you mean No GLC assigned to that Reason Code? Or A GLC is assigned, but all the Acct fields in it are blank?

The GL Acct to use is determined by records in the TranGLC table. These are often created prior to the process that will eventually use them. Like the expense acct on a PO Release. If you do the following, in order:

  1. Set the part class (which uses a GLC) on a PO line
  2. Receive the PO
  3. Change the GL acct on that Part Class’s GLC
  4. Run WIP Recon or Capture COS/WIP

Then the GL Acct used by the Posting Engine will be the original acct specified by the Part Class’s GLC. This is because the TranGLC record (which is what the PE uses) won’t have been updated due to the change to the Part Class’s GLC

You noted “those two transactions had no cost.” I made one cost adj entry and Epicor posted 4 lines to the trans history table. I’m not sure why the two zero lines posted.

Does the cost adjustment from $5 to $6 for example, debit inventory and credit inventory adjustment?

And if I can understand what you mean by net to zero in the same account - what account is this? I was thinking inventory and inventory adj would be hit.

By “blank” I mean No GLC assigned to the reason code.

I understand what you mean by the order of events - sequence is important :slight_smile:

One of the tests I ran had GL control driving to R&D expense (remove part from inventory to be used by R&D) so I expected the inventory to decrease but the R&D expense to increase but GL was not hit. Yet, stock status was affected.

The cost method used can dictate how many parttran records are made. I think using LAST will generate two records.

The posting engine (used by Capture COS/WIP and the WIP Recon report) works by summarizing all the transactions together. If the net to an account is zero, no GL Tran is made.

For example say the summary of WIP Recon report shows:

---------- G/L Account Recap ----------
Account         Debit      Credit   Description
1127-00-01   6,450.00        0.00   A/R CLEARING - MATC
1151-00-01   3,516.71    6,819.17   RAW MTL INV - CHAL - GEN
1152-00-01     595.70  198,055.72   INVENTORY- WIP-MATC
3324-00-01     312.50      312.50   ACCRUED RECEIVINGS-MATC
6005-00-01 139,739.65        0.00   VARIANCE
6303-00-01       1.38    3,204.21   INVENTORY ADJUSTMENTS
6328-00-01  58,316.07      540.41   CGL MITIGATOR COS
================================================================
Total :    208,932.01  208,932.01

When Capture COS/WIP is processed, there will be no GL trans against acct 3324-00-01 because there equal credits and debits.

You’ll never see two lines in the details section of WIP Recon if the specific transaction nets to zero either.

A STK-STK transaction doesn’t show on a WIP Recon, unless a GLC overrode something, like if the transfer was between warehouses that use different Inventory accounts.

First off, be careful how you interpret Stock Status. The quantities shown are calculated based on the date you entered. The costs will always be the current cost. Not the cost on the date specified.

And in your example above, I assume that was a Qty Adj, correct?

We have a Reason Code SHOP-SUP,
image

When I do A Qty Adj and specify Reason Code “Shop Supplies”, I get the following:

Inventory WIP Recon report:

PartTran History (the yellow highlighted record is from the Qty Adj)

Now back to your original question …

The part tran records in the red box above were for a single cost adj. We’re using cost method AVG.

Like yours, I see a tran for the negative of the QOH at the old cost (#2 and #4), and a tran for QOH at the new cost (#1 and #3) . Note that I see two pairs because I have this part in two warehouses.

Which has me thinking … Do you have multiple cost files?

Discovered the issue was due to needing to reimport the posting rules. Once the rules were reimported, everything flowed as expected.