Our company set up the posting groups in such way: Purch. Account = Inventory A/C Inventory Adjmt. Account = Accrued Purchases A/C Invt. Accrual Acc (Interim) = Accrued Purchases A/C Direct Cost Applied Account = Inventory A/C Expected Cost Posting is activated (WITHOUT automatic cost posting). It was set up in such way because the Inventory should be taken into the G/L upon receipt instead of invoice. This also means that in our inventory G/L account, we would have posting from Inventory sub-ledger as well as from Purchases & Payables side. The matching of Inventory sub-ledger and Inventory G/L account works fine until year end closing (31-Dec-04). We noticed that there were problems with the dates that caused the two ledgers to have different figures. E.g. Purchase Receipt (16-Dec-04) = $100 (Run “Adjust Cost” and “Post Invenotry Cost to G/L” on 22-Dec-04, Posting Date = 22-Dec-04) Value Entries 16-Dec-04 Receipt = $100 G/L 22-Dec-04 Dr Inventory A/C = $100 22-Dec-04 Cr Accrued Purchases A/C = $100 Purchase Invoice (05-Jan-05) = $120 (Run “Adjust Cost” and “Post Invenotry Cost to G/L” on 05-Jan-04, Posting Date = 31-Dec-04) Value Entries 05-Jan-05 Invoice = $20 G/L 31-Dec-04 Dr Accrued Purchases A/C = $100 31-Dec-04 Cr Inventory A/C = $100 05-Jan-05 Dr Inventory A/C = $120 05-Jan-05 Cr Trade Creditors A/C = $120 (Note: We can’t put Jan-05 for the posting date when running the two processes because we do have entries that must be back-dated to Dec-04) So, it turned out that the Inventory Sub-ledger showed a value of $100 when we printed the Inventory Valuation report, but the G/L amount was actually reversed out and thus was zero. Is there a way to do filtering for the “Adjust Cost” and “Post Invenotry Cost to G/L” processes that the above situation would not happen? If not, any solution to this problem? Thanks!
Quote ==== Is there a way to do filtering for the “Adjust Cost” and “Post Invenotry Cost to G/L” processes that the above situation would not happen? If not, any solution to this problem? Unquote ===== Yes, there is a way to filter “Posting Inventory Cost to G/L”. While running this batch on the value entry tab, filters can be applied for posting date. But, how much that will solve the problem you are facing has to be seen.
“While running this batch on the value entry tab, filters can be applied for posting date.” What do you mean by “this batch”? Is it to filter by Doc No.? We actually have many such cases (e.g. maybe 20 purchases that were received in last year but invoiced in this year). If we are filtering by Doc No., it may be quite tedious…
Now, there are 2 things here: 1. Filtering while running “Post Inventory Cost to G/L”. This can be done using the Posting date filter on Value Entry tab. By batch job I mean you are running a routine by clicking Inventory, Periodic Activities, Post Inventory Cost to G/L. 2. The situation which has arisen in your case is because invoicing (purchase invoice is prepared) in Jan 05. Stock lying with you in Dec 04 has to be valued and this would get valued at expected cost since expected cost is enabled. Expected cost will be updated with actual cost after purchase invoice is entered.