Skip to main content

Hi,
I’m trying to reconcile the inventory value against the general ledger.
I’m using the “Inventory Value per Period” page.
Upon closer examination of the "In transit Qty" and how postings are carried out in the general ledger, I have come to suspect that we might have an incorrect setup?

In the scenario of inventory transfers between different sites, I've noticed that the transactions do not completely clear account “1433-Stock movements”. Consequently, there remains a balance on this account which is not intended.

Our accounting method employs the weighted average cost approach. It appears that when there's already a quantity of a particular item on a site, the system calculates a new weighted average cost prior to fully clearing the account 1433. This discrepancy is causing the account to maintain a balance, whereas I had anticipated it to be zero if the process was executed correctly.

To provide more context, here's a breakdown of the inventory transaction history:

 

Additionally, for reference, here are the corresponding GL transactions. My objective is to ensure that account 1433 is brought to a zero balance:

 

Thank you for your attention to this matter. Your assistance in resolving this discrepancy would be greatly appreciated.

 

I’m using IFS Cloud Web version: 22.2.8

Hi, 

Check the company setting for the use transit balance option. 

Per IFS Help - Use Transit Balance Postings
Determines whether balancing postings are to be created between inventory (M1) and transit (M3) posting types. When using the inventory valuation methods: Weighted Average, First In First Out (FIFO), or Last In First Out (LIFO), an imbalance can appear between M1 and M3. By using these posting types the imbalance can be cleared.

 

If that box is selected, you should see additional posting lines for the TRANSIBAL+ type business event. 

This will create additional M1/M3 postings when the cost differs between sites and when M3 would retain a value due to that cost difference.  It essentially corrects the M3 balance. 

 

Best regards, 

Thomas

Hi, thank you for the feedback. I will try this in our test-environment and see if that solves the problem.

Br,
Kenneth
 

Hi, thank you for the feedback. I will try this in our test-environment and see if that solves the problem.

Br,
Kenneth
 

I can confirm that this fixed the issue. 

Reply


Terms & ConditionsCookie settings