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Changing Part Class and Inventory GL

  • 5 February 2021
  • 6 replies
  • 739 views
R

When you change a part class of a part it does no inventory transaction and therefore if you have a different Inventory GL on a part class this would make that GL account incorrect.

Just checking how others handle this and if I am correct?

Also if other people use different GL account for stock or put inventory all under one GL.

We would like to separate our potentially obsolete stock into a separate warehouse.
Is there an easy way to have this goto a different GL?

Thank thanks.

Richard

P.S I’m an IT Manager and not in finance so go easy :-)

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Best answer by pjackson 5 February 2021, 17:19

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6 replies

C
Userlevel 2

I believe the transactions will get booked according to the Part Class in effect at the time of the transaction.   So if a part’s part class points to a general inventory category, and the item is received, the value will get added there.  If you change the part class of that part to point to an obsolete account, any future transactions for that part will get booked to the new obsolete category.  Once changed, to have the initial value in obsolete,  You will probably have to move the value via journal  entry From general to obsolete once you make this change.

A

Hi Richard,

 

we have several part classes, raw material, components, finished goods and slow moving each one points to a different GL #

R

Do you reconcile your inventory accounts monthly and if so how do you identify if there are any differences.


E.g Due to part class changes.

Does anyone use the GL account on the warehouse?

A

i try to, do it monthly as long as its close I dont adjust it.  Its too difficult when people are doing transactions.

i have build a BAQ and i then i dump into excel and create a pivot table so i can see the values by GL

 

at high level these are all the puzzle pieces

#1 Regular Inventory ( sub GL#’s)

 

#2 Work in Process ( from the production report)

 

#3 Unposted WIP/Inv.

C
Userlevel 2

We use several Inventory Accounts, 3 each raw, sub and FG for each of our product lines, but only one set of WIP.  Instead of a BAQ, I run a stock status report to Excel and pivot the balances to compare to each G/L account balance.  There is the usual small timing differences each month, so as long as they remain small I consider that good until year-end shut down when I post an adjusting entry to make the auditors happy.

Any change in Class on a part, requires a journal entry to manual move the on-hand value.  Unlike cost adjustment or Cost roll, changing the class does not post any transaction in the GL.

I am interested in the separate account for Slow Moving, as Epicor cannot maintain multiple costs (Mfg cost and de-valued slow moving for example).  

cch

 

P
Userlevel 3

Lots of good answers above.

Agreed- a journal entry is required to reclass when you change part class.

 

Regarding the obsolete/slow moving separation, the cleanest approach is to move it to a separate warehouse, after setting up the division GL Control on the warehouse, and setting up appropriate GL accounts.  

Note that there are a lot of pieces to this approach.  It works well and is common, but is not intuitive to setup.  I recommend engaging a consultant to help with this setup.

Paul Jackson CFO Aseptico Woodinville WA

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