Free JD Edwards Inventory Integrity/Reconciliation Assessment
Monday, May 2, 2016
Thursday, May 2, 2013
Standard Approach to Reconciling Your JD Edwards Inventory Series - Part Three
Implementation Challenges Cont'd
AAI's
}R41543 As of to General Ledger Integrity report relies on AAIs to analyze data and identify
variances
}The good news is that
fixing your AAIs should eliminate some variances
}The bad news is that
depending on your configuration this can be tedious
}Cautions:
}Inventory Related
AAIs should point only to inventory accounts in your general ledger
}COGS Related AAIs
should point only to COGS or Expense accounts in your General ledger
}AAIs typically work
in pairs and are used by specific programs.
A pair of AAIs that should hit inventory with an offsetting entry to
COGS should be set up this way. If you
have an inventory Account in the COGS AAI or a COGS account in and Inventory
AAI, you will get unusable results when running the R41543
Configuration
}Your configuration may require modifications to the standard reports
}WAC/Cost Level 2/Lot serialization:
}If you use cost level
2 but identify each piece individually with a unique lot number,
R41544 will
generate useless results
}You will need to
modify this report to evaluate amount variances consistently with how
you value
your inventory
}You will want to use
the standard report for detailed quantity analysis
Establish A Monthly Inventory Close
}Implement a monthly close with a cutoff period where all users are locked out of the system
}Sequence
}Run Updates
}Run Integrity Reports
}Run Informative
Reports
Inventory Processes
}Your companies processes should be designed to ensure
that all related tables are updated at the same time:
}Manufacturing
Accounting should be executed as least once daily
}When you issue
material to a Work Order, the material is removed from on hand. Manufacturing accounting removes it from
inventory in the General Ledger
}When you complete
material for a Work Order, On Hand is updated.
Manufacturing accounting puts the amount in Inventory in the General
Ledger
}Manufacturing
Accounting should be run on all open work orders before a standard cost roll to
avoid integrity issues
}When you issue
material or complete a work order, the cost that updates the item ledger comes
from the cost ledger, the cost that updates the general ledger comes from the
cost components table
}Reversals – Material
Issues, work order completions, outside processing, etc.
}Due to the complexity
of the tables and how they are updated, reversals in the shop floor control
process can cause integrity issues
}The safest way to
ensure that an integrity error does not occur is to run manufacturing
accounting between each step
}Reattaching a parts
lists
}Parts lists should
not be re-attached after the work order has reached a certain status
}This is especially
true if any activity has been recorded against the work order i.e. material
issues, outside processing, etc.
}Cancelling work
orders
}Cancelling a work
order after there has been activity recorded against it and before manufacturing accounting has been
run will cause an integrity issue
}It is always
recommended that any activity recorded against a work order should be reversed
before cancelling it
This concludes part three of this series. Stay tuned for Tips & Tricks.
Questions
Visit us at: www.cjinv.com
Email us at: jjensen@cjinv.com
Thursday, February 9, 2012
Standard Approach to Reconciling Your JD Edwards Inventory Series - Part Two
JDE Inventory Integrity Process Cont'd
}Reports should be run nightly on a scheduler in sequence
}R41542 As-Of Update
}R41544 Item Balance to Ledger Integrity
}R41543 Cardex to General Ledger Integrity
}This process identifies the variances – You have to solve them!
Implementation Challenges!
}After populating As-Of and running these reports, you may find it
difficult to understand the results. Many factors will impact the
usability of these reports
}Have you implemented all SARS for the process?
}Is As-Of populated correctly?
}Are your AAIs set up correctly?
}Does your configuration require modifications to the standard integrity reports?
}Are all of your inventory processes implemented to ensure consistency?
SARS
}Log into to My Oracle Support and perform a search on both
the R41543 and the R41544
} Ensure that you have downloaded any SARS that directly
impact the accuracy of these reports
Populating As OF
}Initial build of As-Of can be time consuming
}R41542 - As Of Generation summarizes Cardex activity in the
As Of Table by month
}On your first pass you will want to select the following
processing options:
¨Processing Options:
¨Regenerate = 1
¨Completion Report = 1
¨Data Selection: 1/1/xx to 12/31/xx
}On subsequent passes select following processing options
¨Processing Options:
¨Regenerate = Blank
¨Completion Report = 1
¨Data Selection: 1/1/xy to 12/31/xy
}R41548 – As Of Update creates starting balances for each year
}Run this program after each year created with R41542
}Processing Option: Specify Year for which you are creating
starting balances
}Cautions:
}R41542
¨Will delete all records in As OF if you enter the wrong processing option
¨Should be run for Jan 1 through Dec 31 for each year
}R41548
¨Should be run after each run of R41542 to create starting balances in the As Of table for each subsequent year
¨Specify the year for which you are creating starting balances when you run this program
}Cardex Changes:
¨If records have been deleted from the Cardex, you will not get correct balances in As Of
¨If you have used Direct As Of Data Entry (P41112A) in the past to fix As Of, you will need to make those same changes after building the effected year
}Other changes
¨If you have mane any changes to your primary unit of measure for an item, you will have issues
¨If you are missing any conversion factors back to the primary UOM for an item, you will have issues
Conclusion
This concludes part two of this series. Stay tuned for part three.
Questions
Visit us at: http://www.cjinv.com/
Email us at: jjensen@cjinv.com
Tuesday, January 31, 2012
Standard Approach to Reconciling your JDEdwards Inventory Series - Part 1
Better Late Than Never?
Well folks, I realize this is long overdue. I promised this series would start in November. I do apologize for the delay. I suppose it's better late than never. So without further delay.... Standard approach to reconciling your JDEdwards inventory - part 1.
•Typical approach is to compare GL inventory to OH value
Well folks, I realize this is long overdue. I promised this series would start in November. I do apologize for the delay. I suppose it's better late than never. So without further delay.... Standard approach to reconciling your JDEdwards inventory - part 1.
Inventory Reconciliation Overview
•Typical approach is to compare GL inventory to OH value
•Many companies assume the OH value is correct and plug the GL
to tie to On Hand
Quantity & Amount Variances
•Quantity variance created when material was removed from
inventory and On Hand was not updated
•Amount variance created when transactions did not hit the GL
correctly
Cardex is the Key
•Cardex includes history recorded to both OH and GL
•Cardex provides data required to identify quantity problems in
OH
•Cardex holds a lot of records…
JDE Inventory Integrity Process
Tables
•The Process compares three tables
1.Calculate cumulative amounts and quantities based on
Cardex records
2.Compare Cardex cumulative amounts and quantities to On
Hand Quantity and Amount
3.Compare Cardex cumulative amounts to Inventory Balance
in General Ledger
•Identify Variances
Reports
•The Process relies on three reports
1. As Of Update sums Cardex Quantities and Amounts and
writes them to the As-Of table
2. Item Balance to Ledger compares the summed Cardex
Quantities and Amounts to On Hand
3. Cardex to GL compares summed Cardex Amounts to the
General Ledger
•Each report generates a detailed listing of variances
Conclusion
This concludes part 1 of this series. Stay tuned next week for part two. I promise this time. =)
Questions
Visit us at: http://www.cjinv.com/
Email us at: jjensen@cjinv.com
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