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General Ledger inventory account balance does not match the balance on the IC234 Inventory Report
Linda Wernsing
BC:

Question:

Article:

General Ledger inventory account balance does not match the balance on the IC234 Inventory Report

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Supply Chain Management

Prior to upgrading to Infor 10 we used to use IC21 to make inventory adjustments. At the end of the month our General Ledger balance always matched to the IC234 Inventory Report. During the upgrade, it was suggested by our consultant that we should use IC24 instead of IC21 to make our inventory adjustments. We discovered that using IC24 caused differences between the General Ledger and the inventory reports. We tested and found that IC24 adjusted inventory for one amount and posted a  Read more...different amount to the GL but we were never able to figure out why. We discontinued using IC24 and went back to using IC21. We didn't seem to have further out of balance issues until this past month (April) where we discovered we were out of balance between the GL and the IC234 for another $70,000.

We are unsure why this is happening. We've done some review of data and can't really see where there are any quantity or pricing issues. Has anyone had issues with the GL not balancing to the IC234 in version 10? Looking for someone that has some insight on how we can identify what's causing these issues.  Show less...
Supply Chain Management
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Latest msg: Hello Linda! Our experts at Velocity have the following suggestions to resolve your issue. 1. Yes, IC24.1 Adjustments do have an affect on the Gen... from Nate Lindall, on 05/10/2017

Comments (6) (Descending Chronological Order)
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Nate Lindall
BC:
Hello Linda! Our experts at Velocity have the following suggestions to resolve your issue.

1. Yes, IC24.1 Adjustments do have an affect on the General Ledger. - While it makes corrections, the impact of the adjustments have an immediate impact on the GL as these adjustments are sent over to the GL on a daily or monthly basis depending on when the customer does a daily, or monthly, close. It does have its advantages, if the customer uses IC24.2 Detail Adjustments where they can  Read more...require the use of Reason Codes as the reason why the adjustment was made, thus when questions come up as to why the adjustment was made, they can go to the reason code and find out why.

2. When using IC21.1 Issues to make such adjustment the transaction ends up in Item History, mixed in with all other adjustment types for that Item. You would have to drill around to locate the specifics, but you will not find the reason for the adjustment.

3. In IC04.1, there is a setup for accounts. - In the instance of having impact, it appears that the same account assigned to the inventory account is the same account that is being used for adjustments and thus here is the impact. It is hitting the same account, and has impact on the inventory.

Some customers set up a totally different account to track adjustments and inventory.
Most transactions that should show, are receipts from Purchase Orders and Issues to Cost/Requesting Locations.

I would also take a look at IC233. It is what most customers use or they use both IC233 and IC234

I have included a section of the user guide that shows how to override the default acct, however it is my opinion to set up an acct to take away the element of a user "fat fingering" the procedure
See below

***** I would also recommend IC24.2 for making adjustment along with setting up a different acct for adjustments. In addition, I would add the use of IC242 - Transaction Audit Report.
To adjust inventory quantities and override the general ledger adjustment offset account
Access Detail Adjustments (IC24.2).
Define the header information, the items to be adjusted, and the item quantity to add or subtract.
If an item is tracked by bin, select the bin for the adjustment quantity.
If an item is a catch weight item, type the receipt quantity for the item's secondary unit of measure. After the document is processed (not released), you can view the stock-on-hand quantity in the item's secondary unit of measure. Also displayed is what the item's stock-on-hand quantity becomes after the document is released.
Override the general ledger adjustment offset account directly or by reason code.
In the Reason field, select a reason code that you defined previously using Reason Codes (IC17.1). The general ledger account assigned to the reason code is used (if the reason code is Active).
In the Offset Account field, select the general ledger offset account to be used instead of the account specified in General Ledger Category (IC04.1).
Optional. Add a reference notation or adjustment comments for this item receipt.
Select the Add form action.
Release the adjustment document.

Would be happy to assist with any further questions! Show less...
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Kevin Canady
BC:
Very difficult to determine what is causing this issue but best guesses (after reading the issue) are: bad account setups for GL Cat's or location setup, incorrect closing order, lawson bug or any combination of these.

The first step is to reconcile the differences so it is clear what postings are causing the problem, which has been mentioned in replies.
1
John Mitchell
BC:
I've seen this even in 9.0.1
For our situation - it was caused by someone putting a non inventory item on a PO but manually overriding the account on the PO to the inventory account.
Also check the GL category on the IC12 records for non stock items to make sure orders and receipts for non stock items are not accidentally hitting the inventory acct. by non stock, I mean items where the tracking flag = no
John Mitchell
Yvonne Cheslog
BC:
Hi Linda, I would suggest to put in a support ticket on Xtreme Support. Thank you, Yvonne
Mario Naranjo
BC:
Did you check the account defaults on the IC04 for the item? Either transaction should leave inventory for the same amount. Issue just expenses a dept cost center; AJ uses the Adjustment account found on the IC04 for the item. If the AJ account and the Asset account are the same, you will be out of balance. On IC04, every account should be unique. Hope this helps.
1
John Merlau
BC:
I strongly recommend running MM280 to reconcile inventory accounts. Compare last month's IC234 to this month's IC234. If the MM280 activity report doesn't equal the difference between last month and this month, import the 3 .csv reports into Excel and isolate the part number(s) where the activity doesn't match the difference between last month's & this month's IC234.
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