Cancel later recalculations

Indicates that any existing recalculations dated after the Close inventory up toor Recalculate inventory up todate will be automatically be cancelled, or reversed, before you continue with the closing or recalculation.

Recalculate inventory up to

The system date will be proposed by default. You can change this date, but only to a date after the latest closing.

Specification

The option you select determines the level of detail that will be posted to the general ledger. This field is available only if the Update ledgeroption is also selected.

If you select the Totaloption, the sum values for each unique ledger account will be posted to the general ledger as a total figure.

For example:

Inventory close is to make settlements to five different items. As long as the transactions to be adjusted all contain the same general ledger account numbers, then inventory close will sum the values being posted and create only one general ledger journal entry:

Debit:13000 (inventory control), USD 35

Credit: 51000 (COGS),USD 35

If you select the Item groupoption, then the sum values for each unique item group will be posted to the general ledger.

For example:

Inventory close is to make settlements to five different items. These items belong to three different item groups. A separate transaction will be posted in the general ledger to summarize each item group.

Debit: 13000 (Inventory for item group A), USD 12

Debit: 13000 (Inventory for item group B), USD 10

Debit: 13000 (Inventory for item group C), USD 13

Credit:51000 (Cost of Goods Sold for item group A), USD 12

Credit:51000 (Cost of Goods Sold for Item group B), USD10

Credit:51000 (Cost of Goods Sold for item group C), USD 13

If you select the Item numberoption, then the value for each unique items will be posted to the general ledger.

For example:

Inventory close is to make settlements to five different items. These items belong to three different item groups. The transaction posted in the general ledger will be a summary based on the item group.

Debit:13000 (Inventory for item 1), USD 5

Debit: 13000 (Inventory for item 2), USD 7

Debit:13000 (Inventory for item 3), USD 10

Debit: 13000 (Inventory for item 4), USD 4

Debit: 13000 (Inventory for item 5), USD 9

Credit: 51000 (Cost of Goods Sold for item 1), USD 5

Credit: 51000 (Cost of Goods Sold for Item 2), USD 7

Credit:51000 (Cost of Goods Sold for item 3), USD 10

Credit: 51000 (Cost of Goods Sold for Item 4), USD 4

Credit: 51000 (Cost of Goods Sold for Item 5), USD 9

Update ledger

Determine whether to post the adjustment to the ledger as a result of inventory recalculation. If you do not select this option, you cannot reconcile inventory and ledger because the general ledger accounts associated with these adjusted transactions will not be updated. Therefore, you must determine the need for reconciliation before you clear this check box.

Note

Enter a note to be shown in the overview of closing and adjustments. These notes can be viewed after inventory recalculation has completed.

Maximum throughputs

The number of iterations inventory close will perform during the close process The default is 50. A high figure gives on circularity a closer approximate cost price but a worse performance.

Maximum throughputs are used for Bill of Material accuracy as well as Inventory Transfer accuracy.

Bill of material example:

Finished Good (level 0)

Subassembly (level 1)

Subassembly (level 2)

Subassembly (level 3)

Subassembly (level 4)

Subassembly (level 5)

If the maximum throughput value is 4, since the lowest level of the BOM structure is 5, then any cost changes that might have occurred on level 5 will not appear in the finished good item.

Minimum throughput adjustment

Works in conjunction with Maximum throughputs. The value entered for Minimum throughput adjustmentrepresents the minimum currency amount to be reflected in the next level. The default is 1.00. A low figure gives on circularity a closer approximate cost price but a worse performance. The value you enter should be at least as deep as the lowest level in a Bill of Material.

Bill of material example:

Finished Good (level 0)

Component A (level 1)

Component B (level 1)

Assume that the maximum throughput value is greater than 2 and the minimum throughput adjustment is set to USD 5.00. If the Component B item has a settlement that is less than USD 5.00, the cost of this settlement will not be rolled-up and reflected in the cost of the finished good item.