Physical Inventory cycle date critical?

physical-inventory

(Travis Snell) #1

We did our physical inventory at the end of the year. I was on vacation, so one of the managers was supposed to initialize it. I told them on the 31st; because, I thought that was the end of the year for us. It was only after I got back that the CFO told me the fiscal year ended on December 30th. That is unimportant as the manager waited to initialize the physical inventory until January 2nd. I know that when we post we can tell it to use the date of December 30th, and management is paranoid so they don’t allow any transactions until the count is posted. I have some questions I hope anyone can help me with.

  1. When the counts were entered in Count Tag Entry, we told it Date Counted was 12-30-2018.
    If we want the count and adjustments to apply on Dec. 30th and we can set it that way, that should be fine, but will the cycle date being January 2nd affect anything else?

  2. From what I have read, I don’t believe it will, it will just post the adjustments on the date we tell it to when we post it, which would also be when the financials would be adjusted as the CFO wants, but does the physical inventory cycle date affect financials, or does it do something to the next years fiscal periods? What I mean by that is since January 2nd is in a different fiscal period and different fiscal year then December 30th, will that cause any issues when we tell it to post on December 30th?


(Craig) #2

The date you choose when you post the adjustments is the date the tran record uses to hit the GL. so you can back date if you want.


(Craig) #3

you can always spin up a Test environment that is a copy of your PROD after you did the counts but before you post. Then do the posting in TEST. Then let your CFO check what ever they want to check.


(Travis Snell) #4

Thanks! As long as the inventory adjustments are done on the date the CFO wants, then it should be good.


(Tim Shoemaker) #5

I dont believe that it will matter… the date you post is the date that will go into the financials. If you had posted it with the 31st, then it would go into the wrong year.


(Calvin Krusen) #6

Edit: the below is more about partrans happening between the start date and the actual count date. The part trans and GL trans will be dated with the date of the Phys Inv. Entering the counts on 1/2 for a count setup for 12/30, will put the trans in to the period for Dec. As long as that period is open, and earliest apply date isn’t in effect. Also, dont forget to run COS/WIP rollup process, after posting the PhysInv…
End edit

Oh no. Its very critical. The physical inv date is used to calculate the expected QOH. And the difference between that value and count entered, is what is used to make the QtyAdj.

We had some set the start date as 11/3 when it should have been 11/30. And did that make all sorts of problems.

If there was 10,000 of of something on 11/3, we shipped 2,000 on 11/20, and then counted on 11/30, we’d count(and enter) 8,000. The Phys Inv would then make a Qty Adj of -2,000 (the 10,000 it was expecting - the 8,000 we entered). Posting the Phy Inv would create a ADJ-QTY dated 11/3. The system would now show only 6,000 as QOH.


(Mark Wonsil) #7

I’m with Tim here. The comparison is between the frozen amounts and the counted amounts. When you freeze the accounts is what matters in our experience.