Here are several things you might consider, or review.

* If anything is posted using a prior fiscal period date, it updates the prior fiscal totals not the current period. We found this because accounting was regularly running a program that multiplies opening balance times cost, then asked how come the opening balance of inventory can change in the middle of the month. With General Ledger if something posted to a prior year, that is not reflected in current year totals, until you run another preliminary year end close. If something is posted in one fiscal period, using date of a later fiscal period, there's no guarantee it will get posted correctly. Depending on how stuff gets posted to GL, you could have a mountain of unposted detail. Look at RMAs & Voids for example.

* Expected cost comes from the cost AT THE TIME for the item. If later that cost is updated, that does not affect the expected cost, because BPCS cascades information from "master" or "reference" values to copies in other files, at the time of creation of records, where the copied records do not reflect the latest corrected master values. People need to know that when they update one place, what other places also need updating.

* There are transaction effects which can update inventory without updating General Ledger. On our version we can INV / 15 / INV355 then pick a transaction then scroll through them all, with our eyes glued to the bottom of screen for the GL rules, or to middle of screen for cost rules ... warning ... you can try to fix the rules, but some BPCS software ignores the rules.

* How the latest cost gets into parent items, uses what I call a "trickle up" approach, with emphasis on "trickle" slowly, much more slowly than the needs of modern business. It depends on how your BOM is structured, and how you report your labor & inventory WIP, and how long shop orders remain open, and how they are closed. There's ways to do this such that your inventory is correct, but the costs never trickle up.

* If you are using facility costing, and you have activity with items whose cost is null in the right facility (no CMF record) some reports will use value of some other facility via global costing, vastly incorrectly. I fight this several ways, one of which is to run a no-match listing of items with null costs that have activity in MRP & other places.

* PUR210 is an extremely misleading report. It assumes that we cannot pay for something we did not receive, and that costs are managed consistently. The reality is that with BPCS it is possible to pay for inventory never received & you will never know it from the vanilla PUR reports. If an item gets correctly costed after the PO is received, or after the A/P vendor invoice comes in, I guarantee you that your General Ledger will be out of balance.

It would help imensely on this discussion list if you told people your BPCS version.
I work with 405 CD.


Hi All,

I have stayed with this difference (not constant) for a long time and I do not have a solution to it.

If I pick the inventory (stock items) opening balance for a particular day and add all the values for the transactions for that day to it, the value you get is not the same as stock valuation for that day. We use actual cost to value our stocks and also issue items with the actual cost but receive items with the expected price.

What should I do to get rid of this difference?

Regards,

Poeman.

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