Differences between Stock and Finance

[cyberscout]

Hello everybody
I wonder if there are other peoples with that problem, and I would be very grateful if somebody could say what have they have done to solve this problem:

The value of our stock in materials accounting is much higher than in the financial accounting. (Stock: 14 Mio, Financial: 6 Mio.!)

I found 2 problems which can explain a part of this difference:
- Stock Item transactions which wasn't booked by a batch (the WO-State is over 90)
- Our R31802 has a DataSelection on WO State 90. So all IM, IH, IC and IV won't arrive in F0911 until the WO is completed.

But there is still a difference. Now my question:
Has anybody seen such a problem?

Thanks in advance
cyberscout

 

[vasuvv2300]

Hello

There used to issues on Item Ledger(IL) and General Ledger (GL) reconcilitation. There are integrity reports for this. It is a goodpractice to run these reports on a monthly basis. I am writing here from my experience why these differences occur.

1. When you have multi currency 'ON' then if there are multiple items in a purchase order being received then the amount in G/L (Inventory and RNI accounts) are updated with the total foriegn currency amount and this amount is converted to domestic currency on the exchange rate specified at the time of receipt. The conversion in IL is item wise since the cost in inventory is kept only in domestic currency . So there are rounding off differences.

2. One of my clients wanted to get back the credit orders at the same cost as it was sold. Now this was tricky and JDE messes with the entries. It does not update the F4105 and it updates the IL with a old cost and G/L is updated with the current cost. The costing method was weighted average.

3. I had been to a client some of the AAIs were pointing to the same account, so if the credit and debit entries are pointing to the same account(Some cases it is required) then there are no entries in the G/L but IL will have entries.

4. ST/OT can create problems. There was a client where he used to store products in multiple warehouses. but he wanted the same cost at all the warehouses. It used to take time for the produc tot reach the warehouses (some times days). So the product will be issued at one cost and received at another. And in between if there are any receipts then there used to be issues in cost. I do not think this problem was concerning the IL and GL.

4. Negative stocks and weighted average costing method creates lots and lots of mess.

 

[bruce_meyer]

Another area to review is at what point sales/shipment transactions are
being recorded. If they are done at ship confirm, the extended value of the
inventory would be off unless all sales orders beyond ship confirm are
processed through sales update.

You also mentioned that the P31802 was not being run until the status was at
90. In my experience, most companies run the manufacturing accounting
program (P31802) daily (the status code selection is usually set to include
all open orders and to not update the status code of the work order) and the
variance accounting program P31804 on a routine basis (minimum of monthly)
to ensure all the transactions to the system are recorded timely.
Otherwise, as you mentioned, there is not any JE's done to record issues,
completions, labor, etc.

Another area to check is to see if the frozen costs have been updated and
match the cost ledger file. The variance accounting program will catch
this.

Other than this, I would run a test to ensure that all the inventory related
transactions are being pointed to the correct accounts. Also, check for any
manual JE's that may have been done to the inventory account that may be the
difference.

There are integrity reports that can and should be run to verify the
inventory transactions to the GL, but again, in my experience, are somewhat
limited in their use and functionality.

 

[cyberscout]

Hello
Thanks a lot for your information. I already used the R41543 and there
are thousands of wrong items betwenn F4111 and F0911.

You mentioned an IL-GL reconsilation. Does something really exist?

Our consultant made an integrity analysis, which takes the pieces and
the value of each stock item from beginning and ending of a period.
(from F4111)
Then it takes all the changes in that period from the financial (F0911).
And last it takes the difference between all this amounts. But the big
differences originated before we had this report.

Best regards
Felix Albrecht

vasuvv2300 wrote:

 

[SHYAM_AWASTHI]

I am having same problem of difference between
stocks and finance.
pl advice me what Integrity Reports are required to Run.