Month End Inventory Balance Report (Non- ERRM)

How does RFMS gather the information for the Month End Inventory Balance Report?  In this document, we will explain how we gather the information for the report by sections.

Roll & Item Inventory Value

The system will run through the roll & item inventory file and gather up the records that meet the following criteria. 

1. The record has to be received for the system to consider the record.
2. The Invoice date on the record is not blank, and the invoice date is less than or equal to the date entered for the report.
3. The date received on the record is less than or equal to the date entered.

When printing the Month End Inventory Balance report, the system will go through the roll  & item inventory records and find records that have a received date on or before the date you entered for the report.  We will also pick up any records that may have a date received in a new month, but the invoice date is on or before the date you entered for the report.  When looping through the inventory, we gather the value of all records that have an amount in the available column. 

The next step is to add back all the inventory that was available for the month and year you entered.  To get this information, we go to the line file in order entry.

1. If there is a cut date on the line and the cut date is greater than the date you entered, or the line is in a reserved status.  We add that value back.
2. If the job cost date is greater than the date you entered, we add that value back.

If the system finds a record that was received on or before the month and year entered for the report, we then go to the line file in order entry and see when that record sold.  If it was available in the month you requested on the report, then we add that value back. 

Example

Print the Month End Inventory Value Report for the Month and year of February 2019.

We find a record in inventory that meets the date criteria, but the amount  available is zero. 

We go to the line file in order entry and find that roll or item was sold in March 2019.

We add that value back to the report because it was available in the month of February.

Now that we have that information, we need to see if any adjustments were made to the inventory record.  If the answer is Yes, then we need to take those adjustments into account.

The system will run through the inventory history to find any adjustments.

If the amount used on the adjustment record is not equal to zero, where the transaction date is greater than the date you entered, and the remarks are not batch move, then we need to add or subtract this value back.

The system does not consider transfer adjustments.

The system does not consider consolidation adjustments.

Summary

The system will go to the inventory history file and find all adjustment records where the transaction date is greater than the month and year specified for the report.  The system will get the value of those adjustments and add them back.  Batch move adjustments, transfers and consolidation adjustments will not be considered.

Lastly, we have to get the cost, a couple of years ago RFMS decided to always keep the cost with the original record.  This means if you received and costed a roll or item record then edited the record and changed the cost, we will create a new record with the new cost.  This makes the accounting more accurate. 

The system gets the unit cost of the inventory record from the roll & item header record.  We do not go to the history for that information.

Summary of how we get the Roll & Item Inventory Value

The system will loop through the roll & item inventory file, and gather the records and the unit cost that meet the date criteria.  It will also add back the value of any sold material that was sold after the month and year we specified.  It will then add or subtract the value of adjustments that fall in the date range, excluding Batch Move adjustments, Transfers and Consolidation adjustments. 

Uncosted Rolls & Items

These are records that have been received but have not been costed using the supplier invoice.  These include records that have a date received on or before the month and year specified, and the record has no invoice date, or the invoice date is in a future month.

When the system gathered the value of rolls & items, it included records that were not costed.  These records have not been posted to the journal because no AP has been posted; therefore we need to subtract their value.

NOTE: The value will display at received cost (even if record has been modified).

Cut & Delivered Value from Lines

When a line is in a cut or delivered status but not job costed or job costed in a future month, we need to get the value of those records and add that back.

• The system will run through the line file and find lines that are in a cut or delivered status, where the cut date is less than or equal to the date specified. 
• The system will run the line file and find records that have a job cost date that is greater than the date specified but the cut date that is equal to or less than the date specified. 
• The system will run through the line file in order entry and find records that were available for the time period specified and were in a cut or delivered status during that period, or the record was job costed in a new month, but the cut date was in the time period we specified.  These values have to be added back.

Percent Partial Billings

When an order is percent partial billed and the billing group is not final billed at the time of job costing, the percent partial billing value of the inventory is being credited to the inventory GL account code.  We have to find this value and subtract it from the value. 

The system will run through the line file and gather the lines that have the word billing in it.  The Delivery date cannot be blank and the delivery date is less than or equal to the date specified. 

At the time of job costing a percent partial billed order, the system will credit inventory with that value.  The month end inventory balance report needs to find those percent billed line and subtract that value.