visualize success 2011 alan chorney professional services visual south, inc. troubleshooting costing...
TRANSCRIPT
Visualize Success 2011
Alan ChorneyProfessional Services
Visual South, Inc.
Troubleshooting Costing
Visualize Success 2012
Auditing Inventory Costs
• Cost Flow Inheritance• Exception Auditing• Inventory/Work In Process Reconciliation• Audit Tools
– Costing Tools– Reports– Correction Utilities
PUR Receipts
FG ReceiptsWIP Issues
SLS Shipments
ADJ Adjustments
Inventory
<<<
2. P
urch
ase
Retu
rns
1. Purchase Receipts >>>
<<< 6. Receipt Return >>>11. Transfers <<<
5. FG Receipts >>>
10. Adjust In >>>9. A
djus
t Out
>>>
3. Issue >>>
<<<4. Issue-Return
7. Shipments >>>
<<< 8. Ship-Return
Cost Flow - Inheritance
Purchase Receipts
Inventory
<<<
Purc
hase
Ret
urn
PUR Receipt >>>
•Purchase Receipts get their value from settings chosen in Application Global Maintenance
–Standard Costing – Part Maintenance–Actual Costing - Source of Raw Materials
•Purchase Order•A/P Voucher
•Purchase Returns get their value from:–Receipt value of the FIFO Layers for the Part that was Received–Vouching Purchase Returns for a different value will create a Purchase Return Expense
Inventory
<< Issue Return
Issue (to WIP) -->>
W.I.P. Issues•Inv. Trans. Issues take their value from the next available FIFO Layer•Linked PO Purchase Receipts are AutoIssued to WIP and inherit Purchase Costing
•Issue Returns get their value from the issue layer for the Part that was Issued to WIP
Inve
ntor
y
FG Receipts >>
Receipt Returns >
>
FG Receipts
•FG Receipt Returns reinstate WIP Costs based on the prorated value of the original receipt
•FG Receipts take–Standard Costing
•Part Standard –Actual Costing
•Projected Value•Actual Value
Shipments
Inventory
Shipment Return >>
Shipments >>
•Shipments take their value from the next available FIFO Layer•Linked Work Orders Shipments are AutoReceived to FG and inherit WIP Costing
•Shipment Returns get their value from the Weighted Average of the FIFO Layers for the Part that was Shipped on the Customer Order.
•Linked Ship Returns Reinstate W.I.P.
Inventory
Adjust In >>
Adju
st O
ut >
>
Adjustments
•Adjust Outs take their value from the next available FIFO Layer
•Adjust Ins take their value from
•Part Maintenance
•Inventory Transaction Value Override during data entry
Adjust Outs do not reverse Adjust Ins
Chart of Accounts Guidelines for Exception Auditing
• Exception Auditing must be Designed into the chart of accounts
• Total Inventory comprises only and all inventory control accounts
• Product Codes supply the Sub-ordinate detail to the Total Inventory
• Transaction Lines support the Product Code Summaries
• All Interface Accounts, Product Codes and Overrides are VISUAL Control Accounts
Exception Auditing
Work In Process Balance Report By Product Code
Report Totals and Summary Parent Accounts synchronize to create a One-Look Bottom-Line Reconciliation
Report Sub-Totals and Subordinate Parent Accounts synchronize to expose supporting Detail to the Transaction Level
Proper Period End Closing Summary(Manufacturing Activity)
• 1. All Data entry for the period is complete• 2. Run Costing until no updates are found and
Prepare Manufacturing Journals for the Period• 3. Post Manufacturing Journals for the Period• 4. Run Costing Tools for exceptions• 5. Correct any exceptions not due to future
periods• 6. Repeat 3, 4, & 5 until exceptions are clear
Auditing Inventory Costs (Inventory Reconciliation)
•Print the Inventory Balance Report and compare to Account Balance•Verify all MFG Journals are Posted•Verify all Inventory Account Batches are PUR, WIP, FG, SLS or ADJ - Correct all other batch type balances•Correct PUR, FG, or ADJ Credits and WIP or SLS Debits•Correct PUR Debits that are from expense purchases•Print the final Inventory Balance Report and compare to Account Balance
Print the Inventory Balance Report and Compare to Account Balance.
GL=130,179.23Inv.Bal=153,366.23
Verify all MFG Journals are Posted
• Test for Unposted Transactions
Verify all Inventory Account Batches are PUR, WIP, FG, SLS or ADJ
• Use the Accounting Window to Inspect Accounts• Watch for Self Reversing Transactions
Sub-Ledger detail
maintains Transactional
Logic
Print the General Journal by Batch Type
Correct PUR, FG, or ADJ Credits and WIP or SLS Debits.
• Note the Credit Adjustment
Self-Reversing
Transactions
Correct PUR Debits That are From Expense Purchases
• Expect to see Debits from PUR, so watch for the Inventory Control Accounts being used on a line
Think in terms of
Transactional Logic -
No Part_ID means No Inventory
Transaction
WIP - Work In Process• Four Work In Process (WIP) reports provide
corroboration for G/L Balances– Ledger/Post MFG Journals/Reports/WIP
Balance Report– Eng/Mfg/Work In Process Report– Eng/Mfg/Work Order Master Cost Report -
Comparative with Breakdown– Manufacturing Window Info Costs
WIP – WIP Balance Report
WIP – Work In Process Report
WIP Report Corroboration
Correct Exceptions Using Audit Tools
• Check Exceptions using Costing Tools - Set Posting Candidate and Prep Journals
• Check Cost Distribution Analysis– Recalculate Distributions/Force FIFO
• Compare Inventory Reports for Qty & Value– VMFixWRK - Resummarize Work Order– VMFixOHQ - Fix Part table to Match Inv. Trans Table– VMFixIPB - Create Transactions to Match Part Location
Table
• Consists of three major areas of functionality:
– Costing Tools
– Analytical Reports
– Recalculation Functions
Costing Tools
• Costing Tools is an enhanced version of the Print Preparation Analysis Report
– Only Posting Candidates of “N” will come across as exceptions– Ability to set individual Posting candidates– Preparation of Journals– Detail tables added– WIP Balance check added
• The design of the window is to identify possible costing exceptions. The exceptions do not directly point out G/L items. Each exception would need to be investigated to determine what correction, if any, needs to be performed.
Costing Tools
Types of Costs to check include:PurchasesWIPFinished GoodsShipmentsAdjustmentsIndirect LaborWIP Balances
Costs can be checkedby ID or leave blank to check all items in thecategory.
The posting date refers to the Total Posted column. This will show what hasbeen posted up to thatposting date.
Filtering Optionsallow items to beviewed by Total Transactionsand Total TransactionDetail.
Exception Processingallows items to be viewed that show adifference between the Total Transaction amount and the TotalPosted amount.
Costing Tools
Total Transactions andTotal Posted amounts areCompared to determineIf items need to beRe-evaluated.
Note: A journal can beprepared without running CostingUtilities.
Costing Tools
• The Recalculation functions in Costing Tools include the following:
– Recalculate Distributions
– Recalculate Distributions W/Force FIFO
– Recalculate WIP and Inventory Balances
– Recalculate Standards (used as part of the process to reset standard part costs)
Recalculation Functions
• Used to re-evaluate manufacturing activity distributions to the general ledger
– Uses existing in transactions to update out transactions
– Does not break linked transactions
– Generally used when inventory transactions have been back dated
Recalculate Distributions
\ADMIN\COSTING TOOLS \ FILE \ RECALCULATE DISTRIBUTIONS
Distributions can be recalculated for a rangeof parts or for all partsby leaving the range blank.
Distributions can also berecalculated for non-parttransactions.
By indicating a date toProcess transactions onor after, RecalculateDistributions will onlyprocess transactionsafter that date.
Recalculate Distributions
Recalculation Methods are based on the following three procedures:
NOTE: All of the above procedures can create Distributions to the General Ledger.
Recalculate Distributions
COSTED POSTINGTRANSACTION_IDPART_ID WORKORDER_BASE_IDTYPE CLASS QTY QTY CANDIDATE MATERIAL LABOR BURDEN SERVICE============================================================================== ===== ============================================================================================================
11 MMC-FM0001 I A 3 3 N 166.05 91.71 180 92.2512 MMC-FM0001 I A 10 2 N 553.5 305.72 600.02 307.513 MMC-FM0001 I A 4 0 N 221.4 122.28 240 123
104 MMC-FM0001 O I 5 5 N 276.75 152.85 300 153.75124 MMC-FM0001 O I 5 5 N 150 195.5 211.38 0
Recalculate Distributions
COSTED POSTINGTRANSACTION_IDPART_ID WORKORDER_BASE_IDTYPE CLASS QTY QTY CANDIDATE MATERIAL LABOR BURDEN SERVICE============================================================================== ===== ============================================================================================================
11 MMC-FM0001 I A 3 3 N 166.05 91.71 180 92.2512 MMC-FM0001 I A 10 7 N 553.5 305.72 600.02 307.513 MMC-FM0001 I A 4 0 N 221.4 122.28 240 123
104 MMC-FM0001 O I 5 5 N 276.75 152.85 300 153.75124 MMC-FM0001 O I 5 5 N 276.75 152.86 300.01 153.75
IN_TRANS_ID OUT_TRANS DIST_QTY MATERIAL LABOR BURDEN SERVICE=========== =========================================================================================================================
12 124 5 276.75 152.86 300.01 153.75
Recalculate Distributions
• Should only be run on a part-by-part basis
• Breaks all links and re-builds them assigning costs based on transaction date– Out transactions may be re-valued based on back-
dated transactions
Recalculate Distributions – With Force FIFO Re-evaluation
• Designed to re-populate Balance tables
• Should be run after performing Recalculate Distributions to update the Balance table
• Can be used for a range of parts or for all parts
• Can be restricted to a specific posting date
Recalculate Balances – WIP & Inventory
Recalculate Balances – WIP & Inventory
• Inventory Valuation Reports– Inventory Balance– Inventory Valuation– Inventory Transactions
• Costing Tools Reports (Used for reconciling inventory costs)– Cost Distribution– FIFO Distribution
Reports – Inventory Analysis
Inventory Valuation Reports The Four Inventory Reports:• Ledger/Post MFG Journals / File - Inventory Balance
Report– Uses the Persistent Transaction Detail Tables to
Balance to the General Ledger• Reports/Inventory Valuation Report
– Posted Value Traces back through the Distribution Tables for In and Out Values
– Cost Layer Detail shows Inventory Transaction Valuation by Costed Quantity vs. Quantity
• Tools/Inventory Transaction Entry/Print...– Shows the Transaction Value of each Inventory
movement as it is right now
Cost Distribution AnalysisCompares Transaction against Posted Values
This report shows the Demand/Supply
relationship. Out layer cost (Shipment - out of inventory) with the IN
layers that are “Costed” against the Out
transaction.
Any difference between the Out Amt. and the In
Amt. indicates a cost layer corruption that will require the Distributions
to be recalculated.
Costing Tools : FIFO AnalysisReveals Source & Use instead of Demand & Supply IN layer cost (Cost layers in inventory) with the OUT layer information
Corrective Utilities• The following utilities are available to correct
exceptions in addition to the Recalculate functions:
– VMFIXWRK – Re-summarizes work order information– VMFIXIPB – Corrects imported part balances– VMFIXOHQ - Re-sets on-hand quantity information
Thank You