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.

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