Inventory Costing Considerations

7/31/2019 Inventory Costing Considerations

1/37

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EEmmaaii ll :: support@etbsolut ions.comWWeebb:: www.etbsolutions.com

PPhhoonnee:: 336600..552211..99008855


2/37

ET B So l u t i o n s, L L C I n v e n t o r y Co st i n g Co n si d e r a t i o n s Pa g e 2 o f 7

Goals:

1. Get General Ledger t o have correct invent ory values2. Get correct Units of Measure and conversion f actors for it ems in Inventor y Contr ol3. Get Item s in Invent ory Contr ol t o have correct quanti t ies and cost s

Item #Final

QuantityFinalCost

#IV001 600 $10.00#IV002 500 12. 00#IV003 600 12. 00#IV004 900 10. 00

Table 1 - Desired Final Quantities and Costs

Considerations:

1. Invent ory syst em st art ed somet ime pr ior t o company being prepared for cost ing

2. Order Ent ry, Invent ory Receipt s and Purchase Order t ransact ions may have alr eadyoccurred

3. Day end processes have been run in t he past4. Cost s and quant i t ies are probably not correct f or most of t he current i t ems wit h in t he

system

Methods:

We wil l creat e a four it ems in Inventory Cont rol and add some t ransactions so t hat t here is ahist ory f or t hose it ems. We w il l t hen do a physical invent ory process and an invent oryadjust ment process t o fo l low t he dat a f low t hrough a l l o f t he af fected m odules.

Four it ems wil l be set up (see Item Status Report for i t em det a i l ) . Basic in form ation: Moving

Average, no tax, Unit of Measure will be EA and LBS. Items to be received and costed in LBSand sold by EA.

Original Transactions

1. Create items. The four items from above were created (see Item Status Report )

2. Receipt items. Some with same costs some with varying costs (see Transact ion History1) .

Product ID Qty RcvdReceipt

Cost#IV001 500

250

10.00

10.00#IV002 500

35011.0011.50

#IV003 500450

12.0012.00

#IV004 500550

9.009.25

Table 2 - Items Received


3/37

ET B So l u t i o n s, L L C 2 0 0 2 I n v e n t o r y Co st i n g Co n si d e r a t i o n s Pa g e : 3

a. I f you look at t he GL Transactions 1you wi l l see that t he receipts get debit ed tot he Invent ory account and credit ed t o t he Accounts Payable Clearing account

b. Th e Inventory Valuation 1 report shows t he Quantity on Hand and the ActualCost of the items after the receipt process has been completed. Note that t heit ems are shown in t he st ocking unit s or EA.

3. Invoice Items. Orders and Invoices are t hen compl et ed for each of t he it ems on diff erentdates.

Product ID QTY Ave Cost COGS Total Cogs

#IV001 100 10.000000 1000.000000

150 10.000000 1500.000000 2500.000000

#IV002 100 11.205882 1120.588235

150 11.205882 1680.882353 2801.470588

#IV003 100 12.000000 1200.000000

150 12.000000 1800.000000 3000.000000

#IV004 100 9.130952 913.095238

150 9.130952 1369.642857 2282.738095

10584.208683

Table 3 - Items Sold with Costs

a. Review the GL Transactions 2 report t o see what happens t o the separateaccounts. Specifically in this case note the COGS and Inventory accounts which aredebited and credited f or t he Tota l Cogs from t he table above.

b. Th e Inventory Valuation 2 report shows t hat t he Quantities on Hand and theTotal Average Cost have been affect ed properly t hough the Avg. Unit Value isunaffected.

c. Th e Adjustment Calculation 1 wor ksheet shows the acti ons t hat w e would w antperf ormed t o correct t he cost s and quant it ies t o t he desired Final Cost s andQuanti t ies outl ined in Table 1 above.

Item QTY ADJ Unit Cost ADJ

#IV001 +100 0.000000

#IV002 -100 0.794114

#IV003 -100 0.000000

#IV004 +100 0.869050

Table 4 - Adjustments Required aft er Tr ansactions


4/37


Methods and Processes to Correct Inventory

To correct inventor y quant it ies and cost s, t he ACCPAC Advantage Seriesallows the user toperform either Inventory Adjustments or to do a Physical Inventory. The following describest he met hods for bot h along wit h some of t heir advantages and disadvant ages.

Inventory Adjustments

Use Inventory Control 's Adjustm ents wi ndow t o change it em costs and quanti t ies as needed.Some examples of w hen you would w ant t o use t he Adj ust ment s wi ndow are:

o To update the quantity on hand at a location to agree with your physical inventory count.o To return goods to a vendor after you have completed the receipt.o To remove addit ional cost remain ing on a receipt when you return t he tot a l quant i t y

received for an i t em at a locat ion to t he vendor.

Physical Inventory

o Invent ory Contr ol 's Physical Inventory w indow l et you enter t he result s of physical count s

int o your syst em and helps you reconcile t he dif fer ences bet ween quant it ies on hand inyour Invent ory Contr ol syst em, and the physical invent ory count. It al so allows you t oadjust t he unit cost of i t ems.

Tests

First , let s look at t he Invent ory Adj ust ment s Process.

Through Inventory Adj ust ments, you have t he abi l i t y at any t im e t o: 1. Increase the quant it ies of an it em2. Decrease the quant it ies of an it em3. Increase t he cost of an it em4. Decrease t he cost of an i t em

5. Increase t he quant it ies and the cost of an it em6. Decrease t he quantit ies and the cost of an it em

Note: There is not a direct met hod to increase the quant it ies and decrease t he cost (or viceversa) if t hat w ere t he required process.

After doing a day end process and printing out the Item Valuation, one must compare it to thephysical invent ory t o evaluat e what t ypes of t ransacti ons need to happen. Since t here couldbe inst ances where t he quant it ies need to be adj ust ed in one direct ion whil e the cost s inanother i t is advised t o process t he Invent ory Adjustm ents in t wo separat e st eps. Thi s wi l lhelp to reduce data input errors as well.

In our example, we w ish to adj ust t he quant it ies for t he four it ems as shown in Table 4 or ont he Adjustment Calculation 1 in t he appendix 1.

Adjustments for Quantities

In ACCPAC go to t he I/ C Adj ust ment s (f ull process can be found in Appendi x 2) screen andent er t he Items to adj ust , t he Transaction Type (Quanti t y Increase or Decrease), and t heQuanti t y t hat needs t o be adjusted as per Figure 1.


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Figure 1 - Quantity Adjustments

When this is post ed it wi l l and Day End complet ed it wi l l show i n t he tr ansacti on hist ory l ikeTransact ion History 3 and the Inventory Valuation 3 report shows the corrected inventoryquant i t ies. Note: Since w e are not doing anyt hing wit h t he cost , ACCPAC ret ains t he originalTOTAL receipt ed cost for t he i t em. This aff ects the Ave. Unit Value. When the Day End wascompleted, a batch was created but since there was no change in the total inventory value,

ACCPAC automatically deletes the batch (See Figure 2).If one now reviews the Inventory Valuation 3 and computes the change required f or t he Ave.Unit Value youd f ind t he foll owing values in Table 5.

Item Unit Cost ADJ

#IV001 1.666667

#IV002 -1.447060

#IV003 -2.000000

#IV004 1.883600

Table 5 - Cost Dif fer ence after QTY Adjust .

Normal ly at t h is point , we w ould go d irect l y t o t he second part o f t he process, which would

be t o adj ust t he cost s. Inst ead, w e wi l l discuss t he Physical Inventory Method.

Physical Inventory Visited

I one were t o now r un a Physical Inventory Worksheet t o show t he Quanti t ies on Hand and t heUnit Cost you d f i nd t hat f or our i t ems t he quant i t ies are what w e or ig inal ly desired.Performing a Physical Inventory will allow us to adjust the UNIT COST when doing the process.


6/37


Figure 2 - G/L Batch fr om Quantit y Only Adj ustment

The down side t o at t empt ing to correct t he cost t hrough t h is met hod is t hat i f you do notneed to adj ust t he Quantit ies on Hand which would t hen give you a Quanti ty Variance, youcannot ent er a correct ion f or UNIT COST. Since it is possibl e t hat t he inventor y syst em w ouldhave t he proper counts for some i t ems one would not be able t o correct f or t he i t em cost .This is t he reason that it is suggest ed t o correct t he inventory using t he Invent ory Adjustm entmethod. See the Appendix 1 for the Physical Inventory Worksheet and Physical InventoryReconciliation. For t he comp let e Physical Invent ory Process see Appendix 3.

Inventory Adjustment ContinuedIn many cases, one would be tempt ed t o input t he Unit Cost Adj ust ment f rom Table 5 in t o t heInvent ory Adj ust ment (whi ch is t he way that Physical Invent ory cost correct ions are done) asseen in Transact ion History 4 . A problem occurs imm ediat ely as one can only put a valuecontaining up to 2 decimals into the Cost Adjustment Column. If one does do that, then wil lsee ( Inventory Valuation 4 and GL Transactions 3) t hat t he changes are not what t heyrequired. Inst ead, t he proper act ion is t o compute t he TOTAL ACTUAL COST for each i tem ateach location and com put e t he dif fer ence wi t h t he ACTUAL COST in t he syst em ( SeeAdjustment Calculation 3)

ItemActual CostPer System

DesiredValue

Total CostAdjustment

#IV001 5001. 66 6000. 00 998. 34#IV002 6722. 06 6000. 00 -722. 06

#IV003 8400. 00 7200. 00 -1200. 00

#IV004 7304. 76 9000. 00 1695. 24

Table 6 - Total Cost Adjustment

Which would be ent ered int o t he I/ C Adjustm ent s screen as shown in Figure 3.


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Figure 3 - Total Cost Adj ustment

When post ed, i t would give us a f inal Transact ion History 5 , Inventory Valuation 5, and theGL Transactions 4. We t hen get t he Final Quant it y and Cost t hat w e desired ori ginally.

Item #Final

QuantityFinalCost

#IV001 600 $10.00#IV002 500 12. 00#IV003 600 12. 00#IV004 900 10. 00

Note: The f inal bat ch t hat i s sent t o General Ledger may or m ay not m ake the General Ledgerhave the proper valuation. One should make the proper journal entries for this t ime to adjustt he General Ledger t o t he proper values. Remembering t hat i f ot her receipt s and sales haveoccurred duri ng the p rocessing of t he cost s, allow ances must be made.

For questions, please refer to your ACCPAC Advantage Seriesdocumentation or call LJSConsult ing, Inc. @ (503) 554-8986 (email : [email protected] ) or ETB Solu t ion s, LLC @ (360)

521-9085 (email: [email protected] ).


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Sample Company Inc.tem Status (ICITMST1)

Date: Thursday, May 02, 2002 4:57PM Pa

From Account Set

Print

[ ] To [ZZZZZZ]

[IV001] To [IV004]

[All Items]

From Item Number

tem Number

#IV001 Item Valuation 1

Structure:

Category:

Account Set:

Costing Method:

Default Picking Sequence:

Default Price List:

Commodity Number:

Unit Weight:

Last Maintained:

Stock Item:

Serial Numbers:

Inactive:

Y

N

N

5/2/2002LONG

A1

AVG

WHS

lbs.Moving Average 10.0000

Unit of Measure

Stocking Unit:

Units Conversion Factor

EA 1

LBS 18

EA

Authority Sales Tax Class Description Purchase Tax Class Description

Taxes

COUNTY 2 2Non-taxable merchandise Non-taxable merchandise

STATE 2 2Non-taxable item Non-taxable item

Optional Fields

Title Optional Code Description

Warranty

0.00Price


Structure:

Category:

Account Set:

Costing Method:


Default Price List:

Commodity Number:

Unit Weight:

Last Maintained:

Stock Item:

Serial Numbers:

Inactive:

Y

N

N

5/2/2002LONG

A1

AVG

WHS


Unit of Measure

Stocking Unit:


EA 1

LBS 10

EA


Taxes



Optional Fields


Warranty

0.00Price


Item Status Report


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Sample Company Inc.tem Status (ICITMST1)

Date: Thursday, May 02, 2002 4:57PM Pa

tem Number

Structure:

Category:

Account Set:

Costing Method:


Default Price List:

Commodity Number:

Unit Weight:

Last Maintained:

Stock Item:

Serial Numbers:

Inactive:

Y

N

N

5/2/2002LONG

A1

AVG

WHS


Unit of Measure

Stocking Unit:


EA 1

LBS 16

EA


Taxes

COUNTY 1 1Taxable merchandise Taxable merchandise

STATE 1 1Taxable item Taxable item

Optional Fields


Warranty

0.00Price


Structure:

Category:

Account Set:

Costing Method:


Default Price List:

Commodity Number:

Unit Weight:

Last Maintained:

Stock Item:

Serial Numbers:

Inactive:

Y

N

N

5/2/2002LONG

A1

AVG

WHS


Unit of Measure

Stocking Unit:


EA 1

LBS 13

EA


Taxes



Optional Fields


Warranty

0.00Price

4 items printed


10/37

Transaction History (ICHIST02)

Sample Company Inc.Date: Thursday, May 02, 2002 5:39PM P

From Account Set [ ] To [ZZZZZZ]

From Item Number [IV001] To [IV004]

As at Year [2010] Period [12]

Day End

No.

Item/ Desc./

Date/ Year - Period Document Number Type

Entry

No. Quantity Unit Debit

Account Set: AVG Moving Average

Location: 1 Central warehouse - Seattle#IV001 Item Valuation 1

1/15/2010 2010 - 1 IV001 Receipt 34 1 500 EA 5,000.00

2/10/2010 2010 - 2 IV002 Receipt 34 2 250 EA 2,500.00

7,500.00#IV002 Item Valuation 2

1/15/2010 2010 - 1 IV001 Receipt 34 1 500 EA 5,500.00

2/10/2010 2010 - 2 IV002 Receipt 34 2 350 EA 4,025.00


1/15/2010 2010 - 1 IV001 Receipt 34 1 500 EA 6,000.00

2/10/2010 2010 - 2 IV002 Receipt 34 2 450 EA 5,400.00


1/15/2010 2010 - 1 IV001 Receipt 34 1 500 EA 4,500.00

2/10/2010 2010 - 2 IV002 Receipt 34 2 550 EA 5,087.50

9,587.50Total 38,012.50

Total 38,012.50

8 transactions printed

Transaction History 1


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Date: Friday, May 03, 2002 6:52PMG/L Batch Listing - Functional Currency Only (GLBCHL01)

Sample Company Inc.

From Batch Number [000141] To [000141]From Source Ledger [ ] To [ZZ]From Creation Date [January: 2010] To [January: 2010]

Include Printed Batches [Yes]Status [Open, Prov. Posted, Ready To Post]Type [Entered, Subledger, Imported, Generated, Recurring]

Srce. DateTrans

Reference Descri tion Account Number De

Batch Number: 141 Retrieved From I/C Creation Date: Status: Open Ty1/15/2010

00001 1/15/2010Entry Date: 2010-01January ReceiptsEntry Number: Year-Prd.:1/15/2010 2040IC-RC January Receipts January Receipts

1/15/2010 1300IC-RC January Receipts January Receipts 21,00

Entry Total: 21,00

00002 2/10/2010Entry Date: 2010-02Inventory Valuation 002Entry Number: Year-Prd.:

2/10/2010 2040IC-RC IV002 Inventory Valuation 002

2/10/2010 1300IC-RC IV002 Inventory Valuation 002 17,01

Entry Total: 17,01

Batch Total: 38,01

1 batch printed

2 entries printed

GL T


12/37

tem Valuation (ICVALU03)Sample Company Inc. PaDate: Thursday, May 02, 2002 5:56PM

1 - Central warehouse - Seattle

[All] Quantities and Costsnclude

Print

[ ] To [ZZZZZZ]

[IV001] To [IV004]

[ ] To [ZZZZZZ]From Account Set

[Separate Locations] In [Detail]

From Item Number

From Location

ValuationStockingQuantitytem Number/

Last PriceMost Recent CostActual CostUnitOn HandDescription

#IV001

tem Valuation 1

750 EA

Avg. Unit Value:

Cost/Stock Unit:

7,500.00 7,500.00 0.00 7,50

10.000000 10.000000 0.00 10.00

EA EA EACosting Method: Moving Average

#IV002

tem Valuation 2

850 EA

Avg. Unit Value:

Cost/Stock Unit:

9,525.00 9,775.00 0.00 9,77

11.205882 11.500000 0.00 11.50


#IV003

tem Valuation 3

950 EA

Avg. Unit Value:

Cost/Stock Unit:

11,400.00 11,400.00 0.00 11,40

12.000000 12.000000 0.00 12.00


#IV004

tem Valuation 4

1,050 EA

Avg. Unit Value:

Cost/Stock Unit:

9,587.50 9,712.50 0.00 9,71

9.130952 9.250000 0.00 9.25


Total: 38,012.50 38,387.50 0.00 38,38

4 items printed

Grand Total: 38,012.50 38,387.50 0.00 38,38

Inventory Valuation 1


13/37


Sample Company Inc.Date: Thursday, May 02, 2002 6:27PM P




Day End

No.

Item/ Desc./


Entry




1/15/2010 2010 - 1 IV001 Receipt 34 1 500 EA 5,000.00

1/15/2010 2010 - 1 IN0000000000062 Invoice 35 1 -100 EA 1,0

1/15/2010 2010 - 1 IN0000000000063 Invoice 35 2 -150 EA 1,5

2/10/2010 2010 - 2 IV002 Receipt 34 2 250 EA 2,500.00


1/15/2010 2010 - 1 IV001 Receipt 34 1 500 EA 5,500.00

1/15/2010 2010 - 1 IN0000000000062 Invoice 35 1 -100 EA 1,

1/15/2010 2010 - 1 IN0000000000063 Invoice 35 2 -150 EA 1,6

2/10/2010 2010 - 2 IV002 Receipt 34 2 350 EA 4,025.00


1/15/2010 2010 - 1 IV001 Receipt 34 1 500 EA 6,000.00

1/15/2010 2010 - 1 IN0000000000062 Invoice 35 1 -100 EA 1,2

1/15/2010 2010 - 1 IN0000000000063 Invoice 35 2 -150 EA 1,8

2/10/2010 2010 - 2 IV002 Receipt 34 2 450 EA 5,400.00


1/15/2010 2010 - 1 IV001 Receipt 34 1 500 EA 4,500.00

1/15/2010 2010 - 1 IN0000000000062 Invoice 35 1 -100 EA 91/15/2010 2010 - 1 IN0000000000063 Invoice 35 2 -150 EA 1,3

2/10/2010 2010 - 2 IV002 Receipt 34 2 550 EA 5,087.50

7,304.76Total 27,428.29

Total 27,428.29




14/37


Sample Company Inc.

From Batch Number [000143] To [000143]From Source Ledger [AR] To [AR]From Creation Date [January: 2010] To [January: 2010]


Srce. DateTrans


Batch Number: 143 SAMINC AR - 1/15/2010 Creation Date: Status: Open Ty1/15/2010

00001 1/15/2010Entry Date: 2010-011500Entry Number: Year-Prd.:1/15/2010 1115AR-IN Custom Comfort IV 001 10,20

1/15/2010 2400AR-IN Custom Comfort IV 001

1/15/2010 2410AR-IN Custom Comfort IV 001

1/15/2010 4010-100-10AR-IN Custom Comfort Sales, accessories

1/15/2010 1300AR-IN Custom Comfort Inventory

1/15/2010 5010-100-10AR-IN Custom Comfort COGS, accessories 4,23

1/15/2010 4010-100-10AR-IN Custom Comfort Sales, accessories

Entry Total: 14,43

00002 1/15/2010Entry Date: 2010-011240Entry Number: Year-Prd.:1/15/2010 1115AR-IN The Courtyard 15,30

1/15/2010 2400AR-IN The Courtyard

1/15/2010 2410AR-IN The Courtyard

1/15/2010 4010-100-10AR-IN The Courtyard Sales, accessories

1/15/2010 1300AR-IN The Courtyard Inventory

1/15/2010 5010-100-10AR-IN The Courtyard COGS, accessories 6,351/15/2010 4010-100-10AR-IN The Courtyard Sales, accessories

Entry Total: 21,65

Batch Total: 36,09

1 batch printed

2 entries printed

GL T


15/37

tem Valuation (ICVALU03)Sample Company Inc. PaDate: Thursday, May 02, 2002 6:24PM



Print

[ ] To [ZZZZZZ]

[IV001] To [IV004]



From Item Number

From Location



#IV001

tem Valuation 1

500 EA

Avg. Unit Value:

Cost/Stock Unit:

5,000.00 5,000.00 0.00 5,00

10.000000 10.000000 0.00 10.00


#IV002

tem Valuation 2

600 EA

Avg. Unit Value:

Cost/Stock Unit:

6,723.53 6,900.00 0.00 6,90

11.205883 11.500000 0.00 11.50


#IV003

tem Valuation 3

700 EA

Avg. Unit Value:

Cost/Stock Unit:

8,400.00 8,400.00 0.00 8,40

12.000000 12.000000 0.00 12.00


#IV004

tem Valuation 4

800 EA

Avg. Unit Value:

Cost/Stock Unit:

7,304.76 7,400.00 0.00 7,40

9.130950 9.250000 0.00 9.25


Total: 27,428.29 27,700.00 0.00 27,70

4 items printed

Grand Total: 27,428.29 27,700.00 0.00 27,70



16/37

Date: ################# Sample Company Inc.Item Valuation (ICVALU03)


Print [Separate Locations] In [Detail]

Include [All] Quantities and Costs

From Item Number [IV001] To [IV004][ ] To [ZZZZZZ]

From Location


Item Number/ Quantity Stocking Valuation

Description On Hand Unit Actual Cost Most Recent Cost Price

#IV001 500 EA 5,000.00 5,000.00 0.00

Item Valuation 1 Avg. Unit Value: 10.000000 10.000000 0.00

Costing Method: Moving Average Cost/Stock Unit: EA EA EA

#IV002 600 EA 6,723.53 6,900.00 0.00



#IV003 700 EA 8,400.00 8,400.00 0.00



#IV004 800 EA 7,304.76 7,400.00 0.00



Total: 27,470.63 27,742.75 0.00

4 items printed

Grand Total: 27,428.29 27,700.00 0.00

Adjustment Calculation


17/37


Sample Company Inc.Date: Friday, May 03, 2002 7:02AM P




Day End

No.

Item/ Desc./


Entry




1/15/2010 2010 - 1 IV001 Receipt 34 1 500 EA 5,000.00

1/15/2010 2010 - 1 IN0000000000062 Invoice 35 1 -100 EA 1,0

1/15/2010 2010 - 1 IN0000000000063 Invoice 35 2 -150 EA 1,5

2/1/2010 2010 - 2 IV001 Adj. Qty. + 36 1 100 EA 0.00

2/10/2010 2010 - 2 IV002 Receipt 34 2 250 EA 2,500.00


1/15/2010 2010 - 1 IV001 Receipt 34 1 500 EA 5,500.00

1/15/2010 2010 - 1 IN0000000000062 Invoice 35 1 -100 EA 1,

1/15/2010 2010 - 1 IN0000000000063 Invoice 35 2 -150 EA 1,6

2/1/2010 2010 - 2 IV001 Adj. Qty. - 36 1 -100 EA 0.00

2/10/2010 2010 - 2 IV002 Receipt 34 2 350 EA 4,025.00


1/15/2010 2010 - 1 IV001 Receipt 34 1 500 EA 6,000.00

1/15/2010 2010 - 1 IN0000000000062 Invoice 35 1 -100 EA 1,2

1/15/2010 2010 - 1 IN0000000000063 Invoice 35 2 -150 EA 1,8

2/1/2010 2010 - 2 IV001 Adj. Qty. - 36 1 -100 EA 0.00

2/10/2010 2010 - 2 IV002 Receipt 34 2 450 EA 5,400.00


1/15/2010 2010 - 1 IV001 Receipt 34 1 500 EA 4,500.00

1/15/2010 2010 - 1 IN0000000000062 Invoice 35 1 -100 EA 9

1/15/2010 2010 - 1 IN0000000000063 Invoice 35 2 -150 EA 1,3

2/1/2010 2010 - 2 IV001 Adj. Qty. + 36 1 100 EA 0.00

2/10/2010 2010 - 2 IV002 Receipt 34 2 550 EA 5,087.50

7,304.76Total 27,428.29

Total 27,428.29




18/37

tem Valuation (ICVALU03)Sample Company Inc. PaDate: Friday, May 03, 2002 7:07AM



Print

[ ] To [ZZZZZZ]

[IV001] To [IV004]



From Item Number

From Location



#IV001

tem Valuation 1

600 EA

Avg. Unit Value:

Cost/Stock Unit:

5,000.00 6,000.00 0.00 6,00

8.333333 10.000000 0.00 10.00


#IV002

tem Valuation 2

500 EA

Avg. Unit Value:

Cost/Stock Unit:

6,723.53 5,750.00 0.00 5,75

13.447060 11.500000 0.00 11.50


#IV003

tem Valuation 3

600 EA

Avg. Unit Value:

Cost/Stock Unit:

8,400.00 7,200.00 0.00 7,20

14.000000 12.000000 0.00 12.00


#IV004

tem Valuation 4

900 EA

Avg. Unit Value:

Cost/Stock Unit:

7,304.76 8,325.00 0.00 8,32

8.116400 9.250000 0.00 9.25


Total: 27,428.29 27,275.00 0.00 27,27

4 items printed

Grand Total: 27,428.29 27,275.00 0.00 27,27



19/37






From Location




#IV001 600 EA 5,000.00 6,000.00 0.00



#IV002 500 EA 6,723.53 5,750.00 0.00



#IV003 600 EA 8,400.00 7,200.00 0.00



#IV004 900 EA 7,304.76 8,325.00 0.00



Total: 27,472.19 27,317.75 0.00

4 items printed

Grand Total: 27,428.29 27,275.00 0.00



20/37

Sample Company Inc.

Inventory Worksheet (ICWK01)

Date: Friday, May 03, 2002 7:31AM Pa

Location: 1 Central warehouse - Seattle Worksheet Creation Date: 3/12/2010 Worksheet Comment: After adjusting quantities

Item Number / Description

Picking

Sequence Unit Cost Quantity Counted Unit of Measure StQuantity on Hand

EA6008.333333#IV001

Item Valuation 1

LBS

EA50013.447060#IV002

Item Valuation 2

LBS

EA60014.000000#IV003

Item Valuation 3

LBS

EA9008.116400#IV004

Item Valuation 4

LBS

4 items printed

Physical Inventory Worksheet


21/37

Inventory Reconciliation (ICWK02)

Sample Company Inc.Date: Friday, May 03, 2002 7:34AM Pa

Include

Include Comment for Each Item

Show Only Items with Quantity Variance [No]

[No]

[All Units of Measure]

Location: 1 Central warehouse - Seattle Quantities on Hand as of: 3/12/2010 Comment: After adjusting quantities

Item Number / Description

Picking

Sequence

Adjustment

Unit Cost

Quantity

on Hand

Quantity

Counted Unit

Quantity

Variance

Cost

Variance Statu

#IV001 10.000EA6006008.333333

Item Valuation 1 0 LBS

600 EA600

#IV002 10.000EA50050013.447060


500 EA500

#IV003 10.000EA60060012.000000


600 EA600

#IV004 10.000EA90090010.000000


900 EA900

Status:

1 - Ready to post

2 - On hold

3 - Item does not exist

4 - Non-stock item5 - Item not allowed at location

6 - Insufficient quantity

7 - Item not active

4 items printed

Physical Inventory Reconciliation


22/37






Day End

No.

Item/ Desc./


Entry




1/15/2010 2010 - 1 IV001 Receipt 34 1 500 EA 5,000.00

1/15/2010 2010 - 1 IN0000000000062 Invoice 35 1 -100 EA 1,0

1/15/2010 2010 - 1 IN0000000000063 Invoice 35 2 -150 EA 1,5

2/1/2010 2010 - 2 IV001 Adj. Qty. + 36 1 100 EA 0.00

2/10/2010 2010 - 2 IV002 Receipt 34 2 250 EA 2,500.00

3/12/2010 2010 - 3 IV002 Adj. Cost + 37 1 1.66


1/15/2010 2010 - 1 IV001 Receipt 34 1 500 EA 5,500.00

1/15/2010 2010 - 1 IN0000000000062 Invoice 35 1 -100 EA 1,

1/15/2010 2010 - 1 IN0000000000063 Invoice 35 2 -150 EA 1,6

2/1/2010 2010 - 2 IV001 Adj. Qty. - 36 1 -100 EA 0.00

2/10/2010 2010 - 2 IV002 Receipt 34 2 350 EA 4,025.00

3/12/2010 2010 - 3 IV002 Adj. Cost - 37 1


1/15/2010 2010 - 1 IV001 Receipt 34 1 500 EA 6,000.00

1/15/2010 2010 - 1 IN0000000000062 Invoice 35 1 -100 EA 1,2

1/15/2010 2010 - 1 IN0000000000063 Invoice 35 2 -150 EA 1,8

2/1/2010 2010 - 2 IV001 Adj. Qty. - 36 1 -100 EA 0.002/10/2010 2010 - 2 IV002 Receipt 34 2 450 EA 5,400.00


1/15/2010 2010 - 1 IV001 Receipt 34 1 500 EA 4,500.00

1/15/2010 2010 - 1 IN0000000000062 Invoice 35 1 -100 EA 9

1/15/2010 2010 - 1 IN0000000000063 Invoice 35 2 -150 EA 1,3

2/1/2010 2010 - 2 IV001 Adj. Qty. + 36 1 100 EA 0.00

2/10/2010 2010 - 2 IV002 Receipt 34 2 550 EA 5,087.50

7,304.76Total 27,428.48

Total 27,428.48




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Print

[ ] To [ZZZZZZ]

[IV001] To [IV004]



From Item Number

From Location



#IV001

tem Valuation 1

600 EA

Avg. Unit Value:

Cost/Stock Unit:

5,001.66 6,000.00 0.00 6,00

8.336100 10.000000 0.00 10.00


#IV002

tem Valuation 2

500 EA

Avg. Unit Value:

Cost/Stock Unit:

6,722.06 5,750.00 0.00 5,75

13.444120 11.500000 0.00 11.50


#IV003

tem Valuation 3

600 EA

Avg. Unit Value:

Cost/Stock Unit:

8,400.00 7,200.00 0.00 7,20

14.000000 12.000000 0.00 12.00


#IV004

tem Valuation 4

900 EA

Avg. Unit Value:

Cost/Stock Unit:

7,304.76 8,325.00 0.00 8,32

8.116400 9.250000 0.00 9.25


Total: 27,428.48 27,275.00 0.00 27,27

4 items printed

Grand Total: 27,428.48 27,275.00 0.00 27,27



24/37


Sample Company Inc.

From Batch Number [000145] To [000145]From Source Ledger [IC] To [IC]From Creation Date [March: 2010] To [March: 2010]


Srce. DateTrans



00001 3/12/2010Entry Date: 2010-03Inventory Valuation $'sEntry Number: Year-Prd.:3/12/2010 6340IC-AD Inventory Valuation 2 Inventory Valuation $'s

3/12/2010 1300IC-AD Inventory Valuation 2 Inventory Valuation $'s



Entry Total:

Batch Total:

1 batch printed

1 entry printed

GL T


25/37






From Location




#IV001 600 EA 5,001.66 6,000.00 0.00



#IV002 500 EA 6,722.06 5,750.00 0.00



#IV003 600 EA 8,400.00 7,200.00 0.00



#IV004 900 EA 7,304.76 8,325.00 0.00



Total: 27,472.38 27,317.75 0.00

4 items printed

Grand Total: 27,428.48 27,275.00 0.00



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Day End

No.

Item/ Desc./


Entry




1/15/2010 2010 - 1 IV001 Receipt 34 1 500 EA 5,000.00

1/15/2010 2010 - 1 IN0000000000062 Invoice 35 1 -100 EA 1,0

1/15/2010 2010 - 1 IN0000000000063 Invoice 35 2 -150 EA 1,5

2/1/2010 2010 - 2 IV001 Adj. Qty. + 36 1 100 EA 0.00

2/10/2010 2010 - 2 IV002 Receipt 34 2 250 EA 2,500.00

3/12/2010 2010 - 3 IV002 Adj. Cost + 37 1 1.66

3/12/2010 2010 - 3 IV003 Adj. Cost + 38 1 998.34


1/15/2010 2010 - 1 IV001 Receipt 34 1 500 EA 5,500.00

1/15/2010 2010 - 1 IN0000000000062 Invoice 35 1 -100 EA 1,

1/15/2010 2010 - 1 IN0000000000063 Invoice 35 2 -150 EA 1,6

2/1/2010 2010 - 2 IV001 Adj. Qty. - 36 1 -100 EA 0.00

2/10/2010 2010 - 2 IV002 Receipt 34 2 350 EA 4,025.00

3/12/2010 2010 - 3 IV002 Adj. Cost - 37 13/12/2010 2010 - 3 IV003 Adj. Cost - 38 1 7


1/15/2010 2010 - 1 IV001 Receipt 34 1 500 EA 6,000.00

1/15/2010 2010 - 1 IN0000000000062 Invoice 35 1 -100 EA 1,21/15/2010 2010 - 1 IN0000000000063 Invoice 35 2 -150 EA 1,8

2/1/2010 2010 - 2 IV001 Adj. Qty. - 36 1 -100 EA 0.00

2/10/2010 2010 - 2 IV002 Receipt 34 2 450 EA 5,400.00

3/12/2010 2010 - 3 IV003 Adj. Cost - 38 1 1,2


1/15/2010 2010 - 1 IV001 Receipt 34 1 500 EA 4,500.00

1/15/2010 2010 - 1 IN0000000000062 Invoice 35 1 -100 EA 9

1/15/2010 2010 - 1 IN0000000000063 Invoice 35 2 -150 EA 1,3

2/1/2010 2010 - 2 IV001 Adj. Qty. + 36 1 100 EA 0.00

2/10/2010 2010 - 2 IV002 Receipt 34 2 550 EA 5,087.50

3/12/2010 2010 - 3 IV003 Adj. Cost + 38 1 1,695.24

9,000.00Total 28,150.00

Total 28,150.00




27/37




Print

[ ] To [ZZZZZZ]

[IV001] To [IV004]



From Item Number

From Location



#IV001

tem Valuation 1

600 EA

Avg. Unit Value:

Cost/Stock Unit:

6,000.00 6,000.00 0.00 6,00

10.000000 10.000000 0.00 10.00


#IV002

tem Valuation 2

500 EA

Avg. Unit Value:

Cost/Stock Unit:

5,950.00 5,750.00 0.00 5,75

11.900000 11.500000 0.00 11.50


#IV003

tem Valuation 3

600 EA

Avg. Unit Value:

Cost/Stock Unit:

7,200.00 7,200.00 0.00 7,20

12.000000 12.000000 0.00 12.00


#IV004

tem Valuation 4

900 EA

Avg. Unit Value:

Cost/Stock Unit:

9,000.00 8,325.00 0.00 8,32

10.000000 9.250000 0.00 9.25


Total: 28,150.00 27,275.00 0.00 27,27

4 items printed

Grand Total: 28,150.00 27,275.00 0.00 27,27



28/37


Sample Company Inc.

From Batch Number [000146] To [000146]From Source Ledger [IC] To [IC]From Creation Date [March: 2010] To [March: 2010]


Srce. DateTrans



00001 3/12/2010Entry Date: 2010-03Inventory Valuation - CostEntry Number: Year-Prd.:3/12/2010 6340IC-AD Cost Change Inventory Valuation - Cost 1,97

3/12/2010 1300IC-AD Cost Change Inventory Valuation - Cost

3/12/2010 6340IC-AD Cost Change Inventory Valuation - Cost

3/12/2010 1300IC-AD Cost Change Inventory Valuation - Cost 2,69

Entry Total: 4,66

Batch Total: 4,66

1 batch printed

1 entry printed

GL Tr


29/37






From Location



Description On Hand Unit Actual Cost Most Recent Cost

#IV001 600 EA 6,000.00 6,000.00

Item Valuation 1 Avg. Unit Value: 10.000000 10.000000

Costing Method: Moving Average Cost/Stock Unit: EA EA

#IV002 500 EA 5,950.00 5,750.00



#IV003 600 EA 7,200.00 7,200.00



#IV004 900 EA 9,000.00 8,325.00



Total: 28,193.90 27,317.75

4 items printed

Grand Total: 28,150.00 27,275.00


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Appendix 2

Inventory Adjustments Process

Before you start

o Run Day End Processing to update the company's Inventory Control data if you haveposted transactions since the last time you ran Day End Processing.

Entering Adjustments -- General Information

For each transact ion, you enter t he fo l low ing in formati on:o Adj ust ment Number (a number t o d ist inguish t he tr ansact ion from other adj ust ments

for audit control purposes).o Descr ip t ion (add any in format ion you want about t he adj ust ment; opt ional) .o Adj ust ment Date ( t o which you want t he t ransact ion post ed).o Year and Period (t o which you want t he tr ansacti on post ed).o Reference (for example, the reason for the adjustment, or the purchase order number

or invoice number; opt ional) .

Detail informationThe cost ing method used by an i t em record det ermines what deta i l in format ion you need t oenter. For each deta i l l ine on a tr ansact ion, you enter t he appropr ia te in f ormati on, asdescribed next :

o I tem Number (of t he st ock i tem f or which you are enter ing an adj ust ment) .

You cannot enter adjustments for non-stock items.o I tem Descr ip t ion (suppl ied by the program f rom t he i t em record).o Transact ion Type ( the t ype of adj ust ment you want t o make for t he i tem: quant i t y

increase, quant it y decrease, cost incr ease, cost decrease, bot h increase, or bot hdecrease).

o Locat ion ( the inventory locat ion at w hich to make the adj ust ment) .

o Bucket Type (f or it ems using t he FIFO or LIFO cost ing met hod, you can specif y t he w ayin w hich you want t he program t o process t he adj ust ment)

You specif y one of t he fol low ing FIFO/ LIFO processing t ypes:o Off set Bucketo Specif ic Receipto Prorate

o Receipt Number (f or i t ems using t he FIFO or LIFO cost ing met hod for whi ch you selectSpecif ic Receipt in t he Bucket Type f ield).

I f you know t he receipt number of t he transact ion used to ent er i t em unit s in toinvent ory, you can adjust t he FIFO or LIFO bucket t he program created t o st ore t hequantity and cost of the units. The receipt number you specify must appear in the

Finder for t h is f ie ld .o Cost Date (supplied by the program, the transaction date for the receipt number you

specify in the Receipt Number f ield).o Quant i t y ( the number of un i t s by which to adjust t he i tem quant i t y) .

To decrease t he quant it y of an it em in st ock to below zero, you must have select edt he All ow Negati ve Inventor y Levels opt ion in t he Opt ions notebook.

o Cost Adj ust ment ( t he amount by w hich to adj ust t he i tem cost ) .o Unit o f Measure ( t he unit o f measure for t he i t em).


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You specify a unit of measure only for adjustments affecting the item's quantity.o Adj ust ment/ Wri te-Off Account (suppl ied by the program fr om t he i tem r ecord 's

account set, but you can specify a different account).

This is t he general ledger account t o which you post cost adj ust ment s and wri t e-off sfo r the i tem.

You specify an account num ber only f or adj ust ment s aff ecti ng t he it em's cost (t heprogram does not create general ledger transactions for adjustments that affect onlyt he i tem quant i t y ) .

o Comment s (add any comment s you want t o appear on t he Adjustm ents Post ing Journalregard ing the det a i l l ine; opt ional) .

There are no rest rict ions on the number of det ail l i nes you can enter on adj ust menttransactions.

Adjustments Window

This wi ndow l et s you:o Ent er and post adj ust ment s t o it em quanti t ies and cost s.o Import adj ust ment t ransacti ons fr om ot her ACCPAC for Windows dat abases or f rom

non-ACCPAC programs.

To enter adjustments

1. Choose the Adjustments icon from the Inventory Control window.

2. Click t he New but t on to st ar t a new adj ust ment or choose New f rom t he Adj ust mentmenu.

3. Type the adj ust ment number and an opt ional descr ip t ion.

4. I f necessary, t ype the adj ust ment date, f iscal year, and f iscal per iod for t hetransaction.

5. Type an opt ional reference for t he adj ust ment.

6. Add t he deta i l l ines, specify ing t he i t em number, t ransact ion t ype, and locat ion foreach, t hen:If t he it em uses t he FIFO or LIFO cost ing met hod, specif y t he bucket t ype, r eceiptnumber, and cost date.If t he adj ust ment t ype is Quant it y Increase, Quantit y Decrease, Both Increase, or Bot hDecrease, specif y t he quantit y and unit of measure.If t he adj ust ment t ype is Cost Increase, Cost Decrease, Bot h Increase, or BothDecrease, specify t he cost adjust ment and adj ust ment/ wr i t e-of f genera l ledgeraccount.

7. Type any comm ents you wish to add.

8. Choose Post , t hen click OK at t he message t hat appears aft er post ing is compl et ed.

Aft er usingo Run Day End Processing to update Inventory Control's audit data, costing data, and

it em stat is t ics af t er post ing adj ust ments.o Print t he Adj ust ment s Post ing Journal t o check t he adjustm ent t ransacti ons you

posted.


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Adjustments to Items Using FIFO or LIFO Costing

For i t ems using t he FIFO or LIFO cost ing met hod, t he program keeps t rack of t he order i nwhich units arr ive at a locat ion by st or ing each i t em's receipt dat e, r eceipt number, quant i t y ,and extended cost in indivi dual "bucket s."

You can select from three options in the Bucket Type field on detail l ines for how to makeadj ust ment s t o it ems that use t he FIFO or LIFO cost ing met hod: Off set Bucket, Specif icReceipt, or Prorate.

Off set bucket . I f you select Offset Bucket, t hen adjust ments af f ect only the of fset bucket.

For each it em at each location, t here is an "offset" bucket t he program uses for special cases,such as when you ship m ore it ems than t here are in stock f rom a l ocation (you m ust have setup Inventory Control to allow negative inventory levels in order to do this). Offset bucketscont a in a quant i t y and a cost , but do not cont a in a date or receipt number, l i ke otherbuckets.

Specif ic Receipt . You can specif y a receipt number t o select t he cost and quantit yin format ion for a part icu lar receipt . The number of t he receipt f rom which a bucket i s

created is contained in the bucket.Prorate. Select Prorat e to have t he program prorate t he adj ust ment across all buckets( inc luding t he offset bucket) f or the i t em at t he locat ion. The number of un i t s and t heamount of cost prorat ed t o each bucket is based on the quanti t y in each bucket.

The program deter mi nes whi ch buckets to adj ust by whet her t he cost ing met hod is FIFO orLIFO


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Appendix 3

Physical Inventory Process

Before you start

o Run Day End Processing to update the company's Inventory Control data if you haveposted transactions since the last time you ran Day End Processing.o Decide on the inventory locations, account sets, and items for which you want to

generat e worksheet s.o Decide on the sort ing order in which t o l ist i t ems on the w orksheets.o Make sure no ot her users are w orking wi t h t he Invent ory Contr ol dat abase and no

other Inventory Control windows are open on your computer.

Periodic Processing -- Physical Inventory

o Use t he Generate Inventor y Worksheet w indow t o generate invent ory worksheet s t hatspecify the locations, account sets, and items for which you want to count inventory.You can also use the Default Quant it y On Hand opti on to aut omat ically pri nt t hecurrent quant i t y on hand for each i tem i n t he Count ed Quant i t y co lumn of t heInvent ory Worksheet.

o Use t he Inventor y Worksheet w indow t o print copies of t he inventory w orksheets yougenerate, i f you want t o wr i t e t he physica l counts on them w hi le t ak ing st ock. You canalso use t he Default Quant it y On Hand choice in t he Generat e Inventory Worksheetwindow t o automat ica l ly pr in t t he current quant i t y on hand in the Count ed Quant i t ycolumn, so t hat you manual ly ent er f igures only when the counted quant i t y d i f f ersfrom the figure stored as the quantity on hand in Inventory Control.

o Use the Physical Inventory Quantit ies window to enter counted item quantit ies and,wher e needed, t o assign an adjustm ent uni t cost for i t ems. You can also view, edit ,and delete i nventory w orksheets that you creat ed (using the Generat e Invent oryWorksheets wi ndow).

o Use t he Inventor y Reconcil iat ion wi ndow t o print a report of t he count s and cost s t hatwil l be posted when you reconcile your inventory counts. After posting areconci l ia t i on, pr in t t he report t o check for any i tems that t he program could no post .

o Use t he Post Invent ory Reconcil iat ion w indow t o post t he counts and cost s t hat youent ered in t he Physical Inventory Quant it ies wi ndow. The program creat es adj ust mentt ransacti ons when you post invent ory reconcil iat ions.

Generate Inventory Worksheet Window

o Generate worksheets of item quantit ies on hand for all inventory locations for which

you are t aking invent ory.You can opt ionally pr int worksheet s t o use for recording your physical invent ory countsprior to entering the data in the Physical Inventory Quantit ies window and posting it toyour Inventory Control syst em.

You can create invent ory worksheets for a range of i t ems sort ed by it em number ,category, item segment, picking sequence, or any optional f ield names defined forInvent ory Cont rol. You can choose t o include:


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o Only t he it ems in t he specif i ed it em range that are assigned to t he location(s) forwhi ch you are generating w orksheets.

o Only t he it ems in the specif ied i t em r ange t hat are assigned to and have been used inone or more t ransactions at t he locati on(s) f or w hich you are generati ng worksheets.

o All t he it ems in t he specif ied it em range, regardless of w het her t hey are assigned tot he locati on(s) f or w hich you are generati ng worksheets.

Not e: Item s are included regardless of whet her t hey are current ly allow ed to be used inInvent ory Cont rol t ransacti ons.

If you generate an inventory worksheet for a location that already has a worksheet, theprogram replaces t he old worksheet wi t h a new one. The program w arns you if t here areexist ing worksheets for l ocations and let s you choose whet her t o replace t hem.

Warning! To ensure quant it ies and cost s on worksheet s are current , do not post t ransacti ons(receipt s, shipment s, t ransfer s, adj ust ment s, or assembl ies) t hen run Day End Processingbetw een the t ime you generate inventory worksheets and the t ime you t he post t he inventoryreconci l ia t ion.

Inventory Worksheet -- PrintingThe Inventor y Worksheet pr ovides an organized form which you can fi l l out when t aking aphysica l count of inventory. Use t he report t o enter t o ta l quant i t ies for each unit o f m easureint o Inventory Contro l t o prepare for inventory reconci l ia t ion.

The report also set s t he range and order of it em number s for t he Inventor y Reconcil iat ionrepor t .

For mor e infor mat ion on the content s of t his report , see Invent ory Worksheet -- Featur es.

Before printing

Run Day End Processing if you w ant t o include t he lat est cost ing inform ati on in t he report .

You must f irst generate a worksheet for each location you want to include in the report, usingthe Generate Inventory Worksheet window.

When to print

You can print t he worksheet t o assist you when doing a physical invent ory count.

To print the Physical Inventory Worksheet

1. Choose t he Invent ory Worksheet icon in t he Physical Inventor y wi ndow, whi ch youopen by choosing the Physical Inventory icon in the Periodic Processing window.

2. Make your select ions as f oll ows:

From Locati on [ ] to [ ] . Type or use the Finder t o select t he range of locationsat w hich you want t o count inventory.

Include. Select the in formati on t o inc lude in the report .o Unit Cost . Pr in t s t he unit cost f or each i tem on the worksheet .

o Quantity on Hand. Print s t he quanti t y on hand for each unit of measuredef ined for each selected i t em.

o Comment . Select t h is opt ion t o inc lude a comment l ine for each i tem. Use thecomment l ine to record remarks while doing the physical count.

3. To begin printing, choose the Print button.


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I f you are printing to a printer, Inventory Control displays the Print Destination windowt o le t you conf irm your pr in t er se lect ion and change t he number of copies t o pr in t .Choose OK if the settings are correct; otherwise, choose Cancel or Setup.

If you are print ing to a f i l e, Inventor y Contr ol displays t he name of t he f i l e, so you canchange it or cancel printing.

If you are printing to the screen (preview), Inventory Control displays the report. Ifyou want, you can t hen export i t t o a f i le or send i t t o the pr in ter .

Physical Inventory Quantities Window

o Enter invent ory count s af t er t ak ing invent ory.

o Edit inventory worksheets ( if needed) in preparation for posting reconcil iations.

You can enter count ed quantit ies (whi ch are all zero on newly generated w orksheets)and adj ust ment unit cost s, and change post ing st atus.

You can delete a worksheet (use the Delete button), but you cannot delete individuallines.

Inventory Reconciliation Report Printing

The Inventory Reconcil iation report lets you compare actual physical inventory totals with thet ot als in your ACCPAC Invent ory Cont rol syst em. The report ident if ies discrepancies bet weenit em quant it ies and cost s, and shows what w il l be post ed by t he Post Invent ory Reconcil iat ionwindow.

Before printing

Run Day End Processing if you w ant t o include t he lat est cost ing inform ati on in t he report .

When to print

Print t he report a f t er generat ing an Invent ory Worksheet, count i ng inventory, and ent er ingt he count ed tot als in t he Physical Inventory Quant it ies wi ndow. You can also print t he reportafter posting an inventory reconcil iation to l ist transactions that had errors and were notposted.

To pri nt the Inventory Reconciliat ion report

1. Choose t he Invent ory Reconcil iat ion icon fr om t he Physical Inventory w indow, whichyou open by choosing t he Periodi c Processing icon.

2. Make your select ions in t he foll owing fi elds:

Locati on [ ] to [ ] . Specify t he range of locati ons t o include in the report .

Show Only Items wi th Quant it y Variance. Select t h is opt ion to l is t on ly those i tems

that show a variation between the quantity on hand recorded in Inventory Control andt he physical count you ent ered in t he Physical Inventory Quant it ies wi ndow. Thereport t hen excludes it ems for w hich the tot als are the same in Invent ory Contr ol asin your physical count .

Include Comment for Each Item. Select t h is opt ion to pr in t a b lank comment l ine foreach i tem l ist ed in the report .

Include [ ] . Select f rom tw o t ypes of report .


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All Units of Measure. The report l ists quantit ies counted for each unit of measure.

Stocking Unit Only. The report l ist s t o ta l quant i t ies counted in t he st ocking unit o fmeasure only.

3. To begin printing, choose the Print button.

If you are printing to a printer, Inventory Control displays the Print Destination windowt o le t you conf irm your pr in t er se lect ion and change t he number of copies t o pr in t .Choose OK if the settings are correct; otherwise, choose Cancel or Setup.

If you are print ing to a f i l e, Inventor y Contr ol displays t he name of t he f i l e, so you canchange it or cancel printing.

If you are printing to the screen (preview), Inventory Control displays the report. Ifyou want, you can t hen export i t t o a f i le or send i t t o the pr in ter .

Post Inventory Reconciliation Window

o Post inventor y counts and cost s t hat you ent ered in t he Physical Inventory Quanti t ieswindow.

When you post an inventory reconcil iation, the program creates adjustment transactions forany discrepancies bet ween your physical i nventory count and t he f i gures calculated byInventory Control.

Post ing updates quant it ies

When you post an inventory r econci l ia t ion t he program im mediate ly updates i tem quant i t iesso you alw ays know your invent ory l evels. Post ing however does not update cost ing,account ing, and st at ist ica l in f ormation.

Day End Processing updates everything else

You must run Day End Processing t o update cost ing infor mat ion, it em stat ist ics, and auditinformation, and to generate general ledger transactions.

If ne cessary, you can run Day End Processing several t im es a day t o keep costi ng, account ing,and st at is t ica l in format ion more current.

As wel l as post ing inventory r econcil iat ions t o t he current session dat e and report ing period,you can post t hem t o past or f ut ure dates and report ing periods.

FIFO/LIFO costed items: For i t ems that use t he FIFO or LIFO cost ing met hod, t he programadjusts the item's offset bucket for Inventory reconcil iation transactions.


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Inventory Costing Considerations

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Transcript of Inventory Costing Considerations