Re: balancing G/L to Inventory

Jeff, I believe that using a clearing account is your best choice.

The alternative is to make no G/L entry for the IS transaction and debit WIP / 
credit Inventory for the IX transaction. This method is correct from an 
accounting viewpoint and it avoids the "standard cost change" problem discussed 
previously. But, it means that your G/L balances will be out of synch with IM. 
If you use uncontrolled floor stock for low cost items the difference might be 
so small that it is not a concern.

If you go down the single entry path, you must:

  a.. Use the Item Accounting Class or the Item Number to identify uncontrolled 
floor stock items to the G/L interface.
  b.. Define rules so that the G/L interface debits and credits the same 
account when it processes an uncontrolled floor stock item.  

Bob Tenney
Bob Tenney Solutions, LLC
MAPICS - FRx - Presence - Crystal Reports
828-526-8976

Visit www.tenneypubs.com for books about
IFM, COM, G/L Interfaces
Info WorkPlace, Cost Accounting, 
FRx, and PRESENCE
----- Original Message ----- 
From: "Jeff Snyder" <jeffreygsnyder@xxxxxxxxxxx>
To: <mapics-l@xxxxxxxxxxxx>
Sent: Thursday, August 07, 2003 12:21 PM
Subject: Re: balancing G/L to Inventory


>    Thanks Bob,  hoping you would reply
> 
>     
> 
>      Do you agree with the IS of uncntrl F/S  performing a CR to WH Inv
> 
>    and a DR to Uncntrl F/S account.  
> 
>     
> 
>    then having the IX  perform the CR to Uncntrl F/S
> 
>    and a DR to the WIP account
> 
>     
> 
>    Thanks again
> 
>     
> 
>    Jeff Snyder,  CPIM
> 
>    Mapics Consultant
> 
>    From: "Bob Tenney" <BOBTENNEY@xxxxxxxxxxxxx>
>    Reply-To: MAPICS ERP System Discussion <MAPICS-L@xxxxxxxxxxxx>
>    To: "MAPICS ERP System Discussion" <MAPICS-L@xxxxxxxxxxxx>
>    Subject: Re: balancing G/L to Inventory
>    Date: Wed, 6 Aug 2003 18:24:18 -0400
>    Jeff, When you move inventory from a warehouse to uncontrolled floor stock
>    it is a non-event from an accounting viewpoint because the items have not
>    been transformed in any way--only their physical location has been
>    changed.
>    Uncontrolled floor stock is, by definition, uncontrolled and MAPICS does
>    not track its physical balances once you issue the IS transaction. This
>    means that there is no way to reconcile the G/L balances to physical
>    inventory other than manually counting the uncontrolled floor stock on the
>    floor.
>    If there are significant increases in your standard costs, it is possible
>    for your floor stock clearing account to have a negative balance because
>    the unit cost for the IX transaction is greater than the unit cost for the
>    preceding IS transaction.
>    The bottom line is that there are only two things that you can do in this
>    situation:
>    a.. Make sure that uncontrolled floor stock is only used for low value
>    items so the exposure from not being able to track them is minimal.
>    b.. Classify high value items as controlled floor stock so they can be
>    tracked from a MAPICS work in process area.
>    Bob Tenney
>    Bob Tenney Solutions, LLC
>    MAPICS - FRx - Presence - Crystal Reports
>    828-526-8976
>    Visit www.tenneypubs.com for books about
>    IFM, COM, G/L Interfaces
>    Info WorkPlace, Cost Accounting,
>    FRx, and PRESENCE
>    ----- Original Message -----
>    From: "Jeff Snyder" <JEFFREYGSNYDER@xxxxxxxxxxx>
>    To: <MAPICS-L@xxxxxxxxxxxx>
>    Cc: <ROBERT_ZAMPOGNA@xxxxxxx>; <BOB.TENNEY@xxxxxxxxxxxxx>
>    Sent: Tuesday, August 05, 2003 4:24 PM
>    Subject: balancing G/L to Inventory
>    > hey guys - looking for help, advise here.
>    >
>    > we would like to interface IM to GL.
>    >
>    > issues is with Uncontrolled Floor stock
>    >
>    > If we book the 'IS' misc issue, (reduces INV onhand, one sided)
>    > but in G/L cr - Inv dr - flr stk inv
>    >
>    > and book the 'IX' (when MO opens an IX is generated, along with
>    > applying $$ to MO) as a cr to this flr stock acct and dr WIP.
>    >
>    > We will have our WIP in sync with G/L
>    >
>    > ?? is How do we reconcile this G/L acct (Flf stk) with reality ??
>    >
>    > (There is no Onhand at this point in mapics )
>    >
>    > we are afraid this account will grow over time .
>    >
>    > Any advise would help
>    >
>    > Jeff Snyder, CPIM
>    > Mapics Consultant
>    >
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