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[Lisa Ng]

Hi All, 
What do you normally see as common causes for inventory discrepancy?  How do you fix it and reconcile it?  THanks

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Lisa Ng
Business Analyst
NA
HOUSTON TX
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[Kaj Schougaard]

?Hi Lisa,

We had a discrepancy, because of the posting on credit notes was wrong.
Another error could be finansiel vs. physical posting dates.
Else I have mostly used the metode of comparing transactions from the stock module with transaction in the finansiel stock.

Hopefully this inspired you.

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Kaj Schougaard
AX consultant
Danish Agro
Galten, Denmark
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[Lisa Ng]

Hi Kaj,
Thank you for your response.  I would think when I posted an item ( buy or sell), the financial posting date and physical posting date would be the same?  In what situation wouldn’t them be the same?  Thanks again.

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Lisa Ng
Business Analyst
NA
HOUSTON TX
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[Kevin McLean]

?The single most common reason I have seen is bad posting instructions.  In general, only transactions which affect cost or quantity should be directed to the inventory account(s).  Backdating inventory transactions can also cause issues, depending on how you are reconciling.

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Kevin McLean
Strategic Solutions NW, LLC
Beaverton OR
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[Lisa Ng]

Hi Kevin, 
Thank you for your response.  Could you elaborate what you meant by bad posting instruction? 
I’m trying to nail down what caused it so that I can prevent it from happening.

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Lisa Ng
Business Analyst
NA
HOUSTON TX
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[Kevin McLean]

?Some of the posting instructions are intended to post to inventory accounts, and some are intended to post to other general ledger accounts.  The posting instructions intended for inventory accounts will always affect item cost.  I have seen customers set up posting instructions that do not affect item cost as posting to the inventory GL account.  For example, they might have a posting in the miscellaneous charge setup that posts to a ledger account instead of the item, and reference the inventory account in that posting, or have a standard cost variance or accrual entry posting to the inventory GL account.  In those cases, the transaction will update the general ledger inventory value without affecting the inventory cost, which leads to a discrepancy between the GL account balance and the inventory valuation reports.

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Kevin McLean
Strategic Solutions NW, LLC
Beaverton OR
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