In SAP, what happens when someone makes a JV using the inventory account? What happens in SAP when someone puts the transaction in the wrong period, i.e. back/post dates a transaction? Does SAP do average costing? What happens when the transaction are done out of order and you lose the proper weighting quantity? The subledger will not always, always tie out.
Is the Stock Status the report one should use? Probably not. It’s very good at quantity for a given date but not value. Can we write a BAQ to capture quantity and value at a point in time? Sure.
In SAP they have 2 types of accounts. A locked account and unlocked account. The locked account is used for systematic posting that track inventory by part, qty & location to the penny. The secondary account will allow manual entries in case you have to make adjustments. Those JEs should always be reversing and the real transaction should be forced through system during next period. As for timing, using SAP you should lock the previous periods and not allow any backdated transactions to subledger or GL after books are closed. Your force ops or system to pull the transaction through during the open or current period. In my prior company we used Std costing. If std were changed, the inventory would revalue and post JE to GL and subledger would adjust to match.
You can do the exact same thing in Kinetic. You can lock an account so no Journal Entries can be made against a system account. And you can also close all periods except the current.
That’s good but you will need a secondary GL Inv acct setup to book manual postings. IMO, Epicor needs to setup a subledger where the matls, quanities, location and dollar valuation reside. Whenever there is a change in that subledger, addition, subtraction of inventory it updates subledger first then post to the GL immediately after. If inventory valuation is changed, that updates subledger then post to GL. Accts should not have to fight the system with needless reconciliations between to data sets. There are enough headaches doing physical counts and reconciling that to the books.
That’s an excellent idea and nothing stops people from doing so.
I don’t know about immediately. That’s antithetical to the review process that the current Kinetic posting system uses. I have heard some users posting (Capture COS/WIP Activity) more frequently - either weekly or even daily. This would certainly make it easier to stay in balance.
I’ve often reported to Finance departments and as far as I can tell, reconciling balance sheet accounts is their full-time jobs! Bank to Cash account, Fixed Assets to the asset system, inventory to physicals, receivables to open AR invoices/credit memos, payables to open AP invoices, …
I agree with you . This should be easier and there should be more opinionated tools to help with it. Stock Status is just not one of those tools.
Bank to Cash account, Fixed Assets to the asset system, inventory to physicals, receivables to open AR invoices/credit memos, payables to open AP invoices, …
. This should be easier and there should be more opinionated tools to help with it. Stock Status is just not one of those tools.