Inventory and GL Overview Quesetion

I’m having issues between my GL and my Inventory Valuation reports. I’ve run all the adjust inventory costs but I think I have a couple of problems. Well I KNOW I have some problems, I’m trying to figure out the best way to fix and move on.

  1. Direct posting was turned on our inventory accounts. Years ago when people thought we had a “cost issue” they posted manual entries in there to clean things up. I think this is where everything is going off the rails. Since then we have disabled posting so I don’t think that continues to be our problem, but I think the reason I can’t get my inventory valuation and GL to line up.

  2. I’m not sure I totally understand the relationship between the location code and GL. Or I do and things are just setup wrong. So we have multiple locations. To keep things easy(er), lets say 3 main locations, and 3 trucks at each one of those locations.

Location Code The “T” is a truck

101

101-T

102

102-T

103

103-T

So I buy inventory into location 101, say $1000 worth. When I open my chart of accounts, it shows $1000 worth of inventory. Now For my divisions and departments, these would be what I have setup.

Divisions - 101,102,103,
Departments - 101,101-T,102,102-T,103,103-T

If I use a flowfilter on my chart of accounts, that is where things start to go crazy! I have a division and location code that could be the same, but isn’t always the case. If I filter by division 101, that doesn’t match up with location 101’s inventory. I get that and I understand why they don’t match. What I’m trying to understand is…what is the best practice? Since I can’t filter the chart of accounts by location code, what is normal?

Would love for some others to share their “layout”. Thanks for the help!

Jason