4 Replies Latest reply on Nov 6, 2012 7:02 AM by 852698

    Inventory to GL Reconciliation

      Dear All,

      We went go Live on OCT 10 & adopt 12! Oracle.Our main Problem is that there is a huge difference between All Inventory Value report & General Ledger.The said difference is increasing day by day. At time of Implementation Our all Value Inventory Report Showed balance of 10.88 Crores.By end of One Month(Nov-10) The total of all value inventory report was Rs 12 Crores & in GL it was 22 Crores.At 31st Jan the Value as per all inventory value report was 13.5 Crores & in GL it was 32 Crores.It means there is a error in GL.Major amount of Difference In WIP which is Rs 3 Crore as per all value inventory report & 16 crore in GL.I admit that the value shown by all inventory value report is correct.I want to know why there is a difference in all value Inventory report & GL & how can be reconcile the same.Please note further that all 4 periods since implemention are open. Can anybody help me in this matter

      CMA Abhineet Shukla
      Majestic Auto Ltd.
        • 1. Re: Inventory to GL Reconciliation

          Have you found a solution. We are facing the same issue. Any help will be appreciated.

          • 2. Re: Inventory to GL Reconciliation
            HI shukla,
            The following inputs could be useful for solving your issue:
            1) For the month of Oct'10, run the Transaction register(default report is not in excel, we need to convert it) and also Material account distribution report(for inventory account). Using Pivot compare the quantities for all inventory items, the net quantities should be same. If there is a difference in the quantities between these two reports then the following could have happened:
            a) Some of the receipts would have hit some account other than Inventory account. To find out which account the receipts might have hit, you need to run the Material account distribution report for all accounts for Oct'10. This happens because the assignment of account for items could be wrong.
            b) Similarly check the Material account distribution for other accounts to find out if any inventory transactions have been posted to some other account.

            2) Run Account analysis report for Inventory account for Oct'10 and find out if any Manual entries were posted to this account. Normally, all inventory transactions would hit the inventory account with source type as "Cost management". Please check for entries with other source types.

            3) If you have loaded overheads like Material overhead, resource, labor, etc. then the ALL Inventory report would be valuing the material at Material cost+material overhead+Resource+ Labor. However, the GL account will not have these overheads, it will be with Material cost.

            Please let me know after performing the above steps.

            thank you
            • 3. Re: Inventory to GL Reconciliation
              Hi Seema,
              Please refer my post at the following link:
              Inventory to GL Reconciliation

              thank you
              • 4. Re: Inventory to GL Reconciliation
                Hi Ramakrishna

                I have a similar issue.

                GL does not tie to the Receiving Value Report for an a/c

                Please can you let me know remaining steps to be followed and this is very urgent.

                Thanks in advance


                Edited by: 849695 on Nov 5, 2012 11:01 PM