The basic concept behind the standard methodology for reconciling your inventory in JD Edwards is to compare the balances in the following three tables, and identify any variances that exist.
There is more than one way to do this.
So what are your options?
- You can implement the standard JD Edwards inventory integrity process and use the standard tools provided to reconcile inventory.
- You can develop your own set of custom tools to reconcile inventory, and monitor inventory integrity issues.
- You can purchase a 3rd party tool to do it all for you.
- Ensure that variances are being identified between On Hand and Cardex as well as Cardex and GL. Variances can and DO exist in both places, and WILL impact you at month end.
- Ensure that varaiances are being identified at a granular enough level so that the root cause of the variance can be determined. Once the root cause is determined the variance can both be explained and corrected.
Remember, regardless of what tool you decide to use to reconcile your inventory, none of them will solve the root issues that are causing your variances. Variances can be caused due to issues with:
- Lot serialization
- Cost levels
- Cost methods
- Bad Processes
- Improper cancellation of work orders
- Timing of re-attaching parts lists
- Reversals of work order transactions
- Cost Changes
- Month-End process timing and cut off periods
- Corrupt Data
- Unapplied ESU's
- Changes to primary UOM
- UOM conversion factors
- Commit Fails
It's What We Do
CJ Inventory diagnostics specializes in determining and solving the root cause of your variances in order to eliminate them from recurring every month. Find out more about us at: http://www.cjinv.com/, or email me directly at email@example.com.
Beginning next week I will start a series about implementing and understanding the standard approach to reconciling your inventory in JD Edwards.