Please consider adding ASAP - a process that will adjust the calculated Weighted Average Cost(WAC) of an item as well as the balances that were booked to inventory and vouchers payable based on the costs that are entered on a payable related to a PO.
Right now, if a payable comes in that is different than the cost that was on a Purchase Order, the only way to fix the weighted average cost of the product - as well as the value that was booked into inventory - is to delete the PIM, fix the PO cost, and re-receive the item. Additionally, I recently worked with support to understand that if you delete a PIM after additional inventory movements have been created for that item, it will effectively break the WAC calculation. Below are the steps they recommended to fix the problem. It's really involved and will take a lot of effort on the part of operations and accounting to keep everything in line.
It would be beneficial if Accounting Seed would implement a process that would automatically recalculate the WAC and adjust the inventory and vouchers payable based on the value that is entered on a payable line that is related to a PO line since that is the real cost of the product.
Recommendations from AS for fixing a PIM:
1) Never delete a PIM unless it is the LAST Inventory Movement processed on that Product. That includes any IM - SIM, PIM, IIM or OIM. If the inventory was used in a SIM, those must be backed out prior to deleting the PIM.
2) Absolutely do not delete the PIM if other inbound IMs have been processed for that Product after it. ONLY if ALL inbounds, and if necessary outbound IMs, processed after the PIM for the Product can be deleted, can the PIM be deleted.
3) If the PIM is not the LAST IM, and backing out IMs processed after it is not feasible, the correct can only be accomplished 1 of 2 ways.
a) Manually determine/calculate what the correct average cost, qty and GL account balance for that product should be. Outbound (OIM) all QTYs on All IQAs for that product. Inbound (IIM) all qtys on all IQAs using the correct average cost that was calculated. If the Outbound and Inbound GL balance amounts are different, use a JE to balance them.
b) If the situation is relatively simple, for example, the product only has 1 IQA or only 1 IQA has any qty on it, a single IIM and OIM may be feasible. First, manually determine/calculate what the correct average cost, qty and GL account balance for that product should be. Then do either a OIM & IIM or a IIM & OIM to get the average cost to what you calculated as being correct. If the old total inventory GL balance does not equal the new, use a JE to rebalance.
1) Outbound (OIM) 1 QTY for that product. Calculate what the unit must be on 1 qty of the product for the average cost to be what you calculated to be correct. IIM QTY=1 at that unit cost. Use a JE to ensure that the ledger balances to this change.
2) Using the current QTY & average cost, calculate what the unit cost would have to be on 1 qty of the product for the average cost to be what you calculated to be correct. IIM QTY=1 at that unit cost. OIM Qty=1. Use a JE to ensure that the ledger balances to this change.
Please sign in to leave a comment.