Closing Inventory Period Issue

Hi All,

We are on v5.0 SP1. Our person in accounting that normally closes inventory periods is out. We have August and September still open and are looking to close Inventory Period of August. I know I need to run “Adjust Cost - Item Entries”. The “Post to G/L” option is checked on the form, which I’m assuming means we do not need to run the “Post Inventory to G/L”. So afterwards, I would just check the “Closed” box and be done.

My question is, what should our “Allow Posting from” and “Allow Posting To” Dates be in the G/L Setup when we run Adjust Cost? Should it be 10/1/12-10/31/12 since that is the current month and I am guessing we do not want anything to hit the ledger for past months? Right now the “Allow Posting From” is 8/1/12, which seems like it should not be. And Is there anything else I should be aware of before running Adjust Cost??

Also, I know there are entries that have been posted in October but because the Inventory Period is still open for August it is posting Value Entries with a 8/1/12 Posting Date, so I am assuming there will be some cleanup here. So I would like to first close this open period and then cleanup entries.


From the Inventory Costing manual:

When you close an inventory period, no value changes can be posted within the
closed period. This includes new value postings, expected or invoiced postings,
changes to existing values, and cost adjustments. You can, however, still apply to
an open item ledger entry that falls within the closed period.

To make sure that all transaction entries in a closed period are final, these two
conditions must be met before an inventory period can close:
All outbound item ledger entries in the period must be closed (no
negative inventory).
All costs in the period must be adjusted.
In addition, it is recommended that all costs within the period are posted to G/L.

NOTE: If a closed period contains open item ledger entries that relate to
inbound quantities that have not yet been applied to outbound transactions, you
can still apply outbound quantities to these entries despite the period being