Monday, November 14, 2011

Reconciling Your Inventory Is Only The First Step

Basic Concept

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?
  1. You can implement the standard JD Edwards inventory integrity process and use the standard tools provided to reconcile inventory.
  2. You can develop your own set of custom tools to reconcile inventory, and monitor inventory integrity issues.
  3. You can purchase a 3rd party tool to do it all for you.
The keys to remember when selecting your option for reconciliation are:
  1. 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.
  2. 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.
Getting to the root of the problem...

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:
  • Configuration
    • AAI's
    • 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
.....and the list goes on.....

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:, or email me directly at

Stay Tuned!

Beginning next week I will start a series about implementing and understanding the standard approach to reconciling your inventory in JD Edwards.

Tuesday, November 1, 2011

As OF - Did you know?


  • The As Of Posted Code (PC) in the cardex tells you the progress of a transaction in the cardex   
  • If the As Of Posted Code is = 'S', then the transaction has not been recorded in the General Ledger 
  •  If the As Of Posted Code is = to ‘ ‘, then the transaction has been recorded in the general ledger, but has not been processed to As Of
  • If the As Of Posted Code is = 'X', then the transaction is not a reconciling item and will not get processed to As Of 
  • If the As Of Posted Code is = to 'Y', then the transaction has been processed to As Of
Reconciling the general ledger directly to the cardex and/or on hand can be challenging, because not all transactions post to the general ledger immediately.  They do, however, update on hand and cardex immediately.  So if you try to reconcile these tables without knowing this information, you will have variances due to timing that are not true variances.  The standard JD Edwards methodology for reconciling inventory is to use the as of process which takes these timing differences into account as illustrated above.  So the key to a much smoother reconciliation is to incorporate the as of process.  We will discuss this process and the standard approach to JD Edwards inventory reconciliation in future posts.  Stay tuned!
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