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
