Re: BPCS 8.0 Physical Inventory Posting

How things work have changed version to version. This may be one of those
areas.

Let's suppose you do not do physical in coordination with end fiscal month.
Here's what gets messed up.

In middle of month, you have inventory consisting of Opening Balance for the
month, issues receipts adjustments MTD.

When you dump in the physical, it replaces Opening Balance with what the
physical found to be the correct values. It leaves issues receipts
adjustments in the month, prior to the physical, intact. It does NOT
replace on-hand balance with what the physical found to be your quantities.

Here's how we have to do it at 405 CD.

We now do physical inventory in the month of December, which is the end of
our fiscal year.

We announce in advance that the physical inventory will be a particular date
range. Prior to that date, there is a cessation of all transactions that
impact inventory quantity, inventory costs, and we print the tags used for
counting inventory.

Frequently management schedule for the whole process has forgotten some
lessons from prior years, so questions from old timers (like me) can lead to
adjustments in the announced schedule.

Concurrent with the physical counting, there can be other BPCS activity that
does not impact costs used by the physical, but the auditors need us to
prove that was enforced, so I have what we call inventory snapshot reports
showing total inventory quantity and its cost, at various steps of the
process.

End Fiscal month is run thru INV900 which replaces Opening Balance for the
new month, with on-hand total, and zeros out issues receipts adjustment
totals for the new month.

We run a bunch of final physical inventory reports, then dump the tags into
inventory. This replaces Opening Balance with corrected balance according
to the tags, and creates "O" transactions into ITH that itemize the change
in value, with TAG # in the comments, or if no Tag, says so.

Then we complete end fiscal month that comes after INV900.

End Fiscal month does not zero out the year, end fiscal year does that.
When end fiscal month is completed, but before running end fiscal year, we
run some reports showing totals for the year.

Then we go thru a process of replacing next year standard cost, which has
been prepared in advance. We end up with copy of last year's actual and
standard costs in a couple cost sets, because some managers will need to see
some reports showing new costs, prior costs.

Invariably in the next few weeks, months, we find where there was a mistake
in physical inventory, or recosting, that was not caught before end fiscal
year. We have a special ITE transaction for fixing this, and GL adj.

-
Al Mac


-----Original Message-----
From: bpcs-l-bounces+macwheel99=wowway.com@xxxxxxxxxxxx
[mailto:bpcs-l-bounces+macwheel99=wowway.com@xxxxxxxxxxxx] On Behalf Of
mrogers@xxxxxxxxxxx
Sent: Friday, August 21, 2009 10:07 AM
To: BPCS-L@xxxxxxxxxxxx
Subject: [BPCS-L] BPCS 8.0 Physical Inventory Posting

Does Physical Inventory Posting just reset opening balance ... or does it
also clear out all MTD receipts, adjustments, issues in IIM, ILI, IWI,
etc.

i.e. is it necessary to do an inventory month end close before doing
physical inventory .


.
Micki Rogers
Director - Information Systems
Michigan Wheel Corporation
Phone - 616 248-5317
mrogers@xxxxxxxxxxx
www.miwheel.com