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
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Email us at: jjensen@cjinv.com
