Monday, May 2, 2016

Free JD Edwards Inventory Integrity/Reconciliation Assessment

CJ Inventory Diagnostics is offering a free JD Edwards Inventory Integrity/Reconciliation Assessment. Click here to Register.

Thursday, May 2, 2013

Standard Approach to Reconciling Your JD Edwards Inventory Series - Part Three

Implementation Challenges Cont'd


}R41543 As of to General Ledger Integrity report relies on AAIs to analyze data and identify
}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
}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


}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

}Reports/Processes executed at different points in time will generate timing variances that aren’t real variances

}Implement a monthly close with a cutoff period where all users are locked out of the system
}Use this time to run all programs and processes required to ensure that all tables are in sync before integrity processes are run

}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.

  Visit us at:
Email us at:

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?

}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

¨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
¨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

This concludes part two of this series.  Stay tuned for part three.

Visit us at:
Email us at:

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.

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
Cardex is the Key

Cardex includes history recorded to both OH and GL
Cardex provides data required to identify quantity problems in
Cardex holds a lot of records…
JDE Inventory Integrity Process

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

 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

This concludes part 1 of this series.  Stay tuned next week for part two.  I promise this time.  =)

Visit us at:
Email us at: