2001/20 Inventory Reclass

sf_woo

Active Member
OUR INFO
Customer Number : 5681651
Company Name : Shriro (Malaysia) Sdn Bhd
Contact Person : Woo Sook Fun
E-mail Address : sf_woo@shriro.com.my
Telephone : 03-78749842 ext 224 or 285
Fax : 03-78752463 / 78752400
Software Release : OneWorld B732
Cumulative : 2
Service Pack : 12.2

Database : Oracle 8.0.4
Hardware : HP 9000
OS : HP-UX 11.0

Hi,

1. User's objective is to increase the unit cost and the difference to
hit GL as well.

2. IR 327, reduce / take out existing inventory at old unit cost
52.6731 and increase / put in same qty at new cost of 52.9475.
<<20010619 IR.xls>>

3. Printed the journal out.
<<R41550_SPM-IO-IR_179023.PDF>>

4. From item ledger, we notice that the qty on-hand value DOES NOT
tally with total ledger anymore.
<<20010619 IR LEDGER.xls>>

5. What's in the journal entries.
<<20010619 IR GL.xls>>

Rgds


Sook Fun

.
 

david_mallory

Well Known Member
Woo Sook Fun,

We cannot see your attachments.

1. What method did you use to take out the old value? It needs to be a
method which causes OW to create an F0911 GL entry so GL stays in sync with
inventory, along with entries in F4111 inventory transactions and F41021
on-hand quantity and F4105 unit cost.

2. I recommend that instead of removing, with whatever method, one amount
and replacing it with another amount, you do an adjustment, with P4114, and
add the required difference in amount. I also recommend that when you do
this you adjust in 1 unit with the required amount difference, then adjust
out the 1 unit you added, at some minimal amount. OW does not like an
adjustment with 0 units. Our inventory lead person learned this through
experience.

3. This approach assumes that it is OK, for your purposes, for the
expense/income created by the change in value to go to the account you have
set up in the AAI which is associated with P114 adjustments.

Dave Mallory Denver Water 7332 SP 15.1 Oracle 8.1634 NT 4.0
 

sf_woo

Active Member
Dave,

Thanks for recommendation. This mail was initially meant for GSS, that's why
you can't see those attachments, no attahchments on the user list.

We are using the inventory reclass program. The objective is to increase the
unit cost due to a data-entry error previously via IR as well.

The scenario as follows :

On-Hand Qty On-Hand Value Item Ledger Value
Item Cost

Original 937 49,354.69
49,354.69 52.6731

IR 327 937- 49,354.69- 49,354.69-
52.6731

IR 327 937 49,611.81 49,611.81
52.9475

System generated 0
257.12-
zero balance adj

T O T A L 937 49,611.81
49,354.69 52.9475

As a result of the above events which took place, we have a journal of the
difference in GL which is correct but now total on-hand value <> total item
ledger value. We are puzzled as to why there is a zero balance adjustment
created in this scenario, at which point and under what circumstances.

Would appreciate anyone who can shed some light on this.

Thanks.

Rgds
 
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