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

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

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Email us at:  jjensen@cjinv.com