Does anyone have an inventory report that they run at month-end to tie out to the GL for inventory? We run the Stock Status report and it does not tie due to capturing monthly. Do you make a journal entry on a monthly basis to tie out the GL to the Stock Status?
Below is a reconciliation of our inventory GL to Stock Status.
This comes up all of the time and the Epicor response is that you cannot do it.
That being said, what costing method do you use? Do you use lot or serial tracking?
We use average costing. We do not use lot or serial tracking.
What are other companies doing to tie out inventory? Do you make a monthly journal entry to tie out to the Stock Status report? I would think that report would be the accurate value of inventory.
Like @John_Mitchell said, it’s been covered here many, many times, and there is an EpicCare KB article as well.
“Subledger” is what people call it sometimes, if that helps the searching.
But it just can’t be done. You can backdate transactions and that will always make a mess of any attempt to reconcile - though it’s nearly impossible even without that.
Just figure out what will make the auditors happy.
I’m not an accountant (sometimes forced to play one) but you should not make GL entries to your inventory accounts. Doing that to balance to the stock status will become a never ending process.
I think with AVG costing you can get closest to balance by running C&P and then the SSR right after before any new transactions are entered.
Also check to make sure none of your Misc codes are directed at your inventory accounts and that your AP dept is not making any direct invoices to those accounts as well.
If you use lot or serial tracking you can tie the parts in stock back to the GL Journal and compare the values between the GL transactions for a part and the calculated cost for the part.
I have found that MFG-VAR and ADJ-CST transactions create almost all of the variance between the GL and the inventory value for us.
This can’t be stressed enough. And it doesn’t just mean no more entries prior to that date.
SSR will use the “current” part costs. Not the cost that it was on the date selected in the SSR!