Year end was October 31, 2008 and we performed a count. I went through the procedure to do the count actually on November 2, 2008 and of course the system was set for oct 31, 2008. we have a handful of modules, OE, IC, CQ, SA, GV, GL, AR and AP (just in case having that info makes a difference in your answer.

here is the question....i printed off the item valuation report after the inventory was done....it was the value of the print out before less the variance....it made sense.

There were some items on that list that did not have any values. We use moving average method to value our inventory. Today when i print out the item valuation for october 31, 2008 it doesn't look the same and there are average values for these items.

You see we found out at year end by the accountant that one item was input in wrong at the count date and now i need to adjust. i was going to adjust the item as of nov 1st since i haven't closed november off.

why did this report change? and how do i know how this will affect the inventory, this change, and the bottom line. i have 2000 inventory items and this just all seems confusing.

thanks
Laura

i traced one item and found that we sold 24 units nov 26.....i did the day end today...and the 24 units sold is reflected in the oct 31 report...why does that data get represented in a report that is dated after the sale? is this how adagio works?

please someone help me understand how this works.
thanks

Hi Laura

I don't work for Softrak, so this may not be the official reply. But I think that your question is so data-specific that you might benefit from having a local Adagio consultant look at your data. A consultant could also lessen your confusion with one-on-one training. Of course that costs money, but sometimes that's inevitable.

In the meantime, you should definitely run Data Integrity Check on your data to confirm that the data is clean. If it isn't, then all bets are off as to how the report figures are calculated.

Steve

Hi Laura,

If you print the Item Valuation report and change the date to something earlier than today, the report subtracts all historical transactions it finds, dated between the report date and today. This means that for a back-dated Item Valuation to report the correct quantities, all transactions related to the item must be in IC History. Can you confirm this? You can check the Transaction History tab from the Item Inquiries with Sales and Costs function, for that item.

For example, if your current Qty on Hand of an item is 100, and there is a transaction history record for a shipment of 24 on Nov 26th, then if you backdate the report to Nov 25th the report calculates the Qty On Hand on that date as 124. If your history is incomplete, the report cannot correctly calculate the QOH as of that day.

Certainly a Data Integrity Check that fails could be a cause, as Steve noted.

thanks steve.
i just set up a blank company and was fiddling with the program at home. I noticed this. if you have an inventory item at Dec 1 with nothing in it...receive 500 units dec 2 and then dec 3 you sell 250 units.....if you do not do day end and print the item valuation you will see that dec 1 the item has -250 units....although you shipped this product on dec 3rd. this means that the item valuation report does not catch a moment in time. once you start posting invoices against inventory you can never get that one moment in time back. once you do day end...the cost will show negative as well.

i don't understand why a sale from 2 days in the future would affect the inventory item valuation report.

thanks,
i did a data integrity check and all was fine and it didn't change what i was seeing.

however what is ic history...how do i complete that?

Hi Laura,

If you use OE, then you have to print and purge the Invoice Audit List report in order to update the IC History file with the sale. Try doing this and you should find that the Item Valuation report will start doing what it should.

i went to the item inquiry and looked into the history and saw the transactions.

i started fresh again because i was getting confused.
so i had 400 units in at $1. dec 4....so then i invoice 100 units dec 5th.....i processed day end and printed and cleared the audit list...dec 5th item valuation list is correct.

but for Dec 1 the list now show -200 units.
now what am i doing wrong, please make me see the light.

although i logged into oe December 6th, it is posting the shipments for dec 1? why is that. all three invoices show in the history as dec 1 and this is why the valuation report is getting messed up. what did i do wrong.

In OE, when you do a shipment/invoice, the Totals tab has the Invoice Date. This is the date that is used for the IC Historical Transaction. It doesn't matter what date you use to sign into OE nor the date that you run Day End.

To see the 'ins and outs' of the item quantity, try previewing the Stock Card report in Inventory. This can be found under the Reports menu and the Stock Control section. This report calculates the qty on hand as of a past date in the same manner as the Item Valuation report, and you can see the 'running progress' of the quantity, within each location. In your case, use a date range of Dec 1 to 5 and hopefully you should see the correct Opening Qty and all the transactions you posted for that item.

alright, so i found that i was invoicing on the wrong date for some of them and began this again.

i started out with Dec 1 receiving 500 units @$1.00 and then dec 2 i shipped 100 units. i printed the audit list and cleared it like you said and i see both transactions in history on their proper dates. the inventory valuation shows the 500 units for dec 1 like it should and it shows the 400 units for dec 2nd like it should.

there is only one problem, why is the average cost that prints on the valuation report at 1.25? and not 1? 1.25 is 400 units divided by $500.....the 500 units shows and the total cost shows $500 but the average cost per unit is now wrong.

Sorry for all the confusion, but the someone who showed me how to use this, left out a lot of steps. i finally have it all. i see that when you print a historical item valuation, it does not include recent or standard costs...and the average cost takes the units on hand today and divides by the total for the historical date. Why does it do this?

thanks for you help.

Hello Laura,

Did you ship the 100 units before you processed the receipt of the 500 units? I think that a basic source of the confusion here is that Inventory is not strictly date sensitive. So, if I ship 100 units on an invoice dated December 2 and post it all the way through, I end up with -100 units in inventory with $0.00 cost. If I then receive 500 units for $500 on a receipt dated December 1st, I end up with 400 units in stock with a value of $500 regardless of the fact that the receipt is dated before the shipment. The receipt must be processed before the shipment.

The inventory valuation report does not include recent and standard costs because it does not know what those values were at the date the report is being printed (it only knows the current values), and those two numbers are not relevant to the inventory valuation number that is in the general ledger. Our thought was that the only reason to be printing a back dated inventory valuation report would be to get one that would tie back to the figure in the general ledger.

Make sense?

i did process the receipt first. i was going to try posting the receipt after and see what happens...i like to understand how things work so when i am dealing with the people in the office in charge of doing these things i know how to instruct them.

so basically, you are telling me that the # of units will be correct and the extended value but not the average cost per unit.

thanks
if that is the case, i have live data that is a mess and i don't know why. i have 2000 inventory items and the person in charge of receiving etc. made a mess if this is how this all works. how do you sort these things out.

I don't think that the report should have reported a value of 1.25 for the unit cost - it really should be 1.00. I processed a receipt and a shipment in a similar fashion as you indicated and saw that the unit cost on the report doesn't calculate with the correct values for the qty and total cost as of a date between the receipt and shipment dates.

We'll have to take a look at the report. The Quantity on Hand and Total Cost amounts are correct, if that helps your auditing situation.

i am not sure if i am supposed to ask this question here or in the technical question, but it goes along with this report. thanks for looking into that.

what order do things post in the program for the inventory module. Receipts, orders, transfers, adjustments, physical counts etc. for a date in time. I ask this because we had a physical count October 31, 2008 and closed the month. we have done transactions for November and have not closed that period yet. the purchaser has gone through the count in the meantime and has found that the input sheets were incorrect and i need to adjust the count. i could do the adjustments for november 1, but i can't do these adjustments to the physcial count because i don't know the best way to put them in and i don't know how the module orders the different things you can "do" to inventory on a specific date.

thanks
laura

Hi Laura,

Adagio keeps track of the Date for the purposes of backdating reports, but it does not keep track of Time. And the reports do not allow selecting a time to backdate to. Thus if a number of transactions of differing types (Receipts, Shipments, Transfers, etc) were all posted on the same day, you can get either all of them or none, but not some, as of a particular time in between.

Therefore it doesn't matter what order you post transactions if they all have the same date - reports such as the Item Valuation or the Stock Card report will select them all. If you want to record an Adjustment and have it separate from the Physical Inventory, you should give the Adjustment a date that is not the same (ie Nov 2). Thus you can print a Valuation as of Nov 1 for the Physical Count and another as of Nov 2 to take into account the recent Adjustment.

Or you may prefer to have the Adjustment as of Nov 1. How you post this adjustment is up to you.

Hi Laura,

Also to clarify, all transactions are posted directly to Adagio Inventory the oment they are posted, regardless of the date given on the transaction. There is no concept of a "post dated" transaction. What is reflected on an item inquiry is the current position of the item with all transactions posted (even if some of those transactions have dates in the future).

Thanks for the clarification this helps a lot, but to make sure i understand. So my Oct 31st count which was the last thing i input in before closing out month end, I cannot get that report back.

So the differences that i need to add or subtract to that inventory, i could date those november 30th and do a physical account on that date. I could do an adjustment and increase quantity, cost or both, but i would have to insert each adjusment one by one. Adagio doesn't have a way of going to the next product, or does it? or i could go through the inventory physical count and add the oct differences to the quantity and change the average cost to adjust for any difference in total valuation. Then when i print out the variance, it should match the errors we found in our oct 31 count?

Please advise if i am finally understanding you. or if you have a better idea to put this in. we have over 1900 items and approximately half of them are affected and i need to add additional items that were not on the inventory list in the computer as of the 31st of oct.

thanks
Laura

Hi Laura,

The only 'stored' quantity on hand for any location is the quantity right now, and not for any time in the past. These historical counts that can be printed on back-dated reports are based on calculations, so if all of the historical transactions are not correct for a particular item, then indeed you won't be able to get the Oct 31st count. Nor will the Oct 31 count be correct if the stored qty on hand for today is incorrect.

If you know the actual differences between what quantity is stored in Adagio Inventory (as of Nov 30) and the actual physical count (as of Nov 30), you could enter these differences either as an Adjustment or via a Physical Inventory process, dated as of Nov 30. That would update the backdated reports. You may want to try this on a copy of your data (rather than live data) and only for a couple of items to start with, to ensure that it is doing what you expect it to.

The fastest way to do a physical inventory adjustment is to use the Import/Export process. You can export the stored quantities for each item (from the computer) to an Excel spreadsheet.

Ensure that you choose the 'Qty on Hand' field as one of the fields to export (and later import) if you want to import differences in stock qty, not actual figures. Should you want to import actual stock counts, leave out the 'Qty on Hand' field from the export/re-import process.

In the Excel spreadsheet, the 'Qty on Hand' represents what is in the computer, and the 'Stock counted' represents the physical stock quantity on hand.

If you choose to do this, I can't recommend strongly enough that you do a backup of your Inventory data before posting the imported inventory reconciliation.

thanks for you help. just one question, if you use this export import method, does adagio make up the entries for the differences?

If you export/re-import a physical inventory reconciliation, the difference between the 'Stock on hand' and the 'quantity on hand' will be posted as an adjustment, when you run the Post Inventory Reconciliation function after the import.

Alternately if you know the quantity difference already, you can simply import an Adjustment function.

One main different between these 2 processes is that importin g a physical inventory allows you to print a report and otherwise verify that the changes are as desired before you officially post the changes to update the quantity. Importing an adjustment batch immediately updates the quantities (and costs, if selected), so you need to be sure of the values before doing this.

Make a backup of your data before running either of these functions.

Hello Support:

This is just a footnote to a larger discussion, but are you certain about an imported Adjustment being immediately posted?

Perhaps this is simply a matter of terminology but when I import an IC Adjustment file, it goes into the Adjustment "batch". It's true that it cannot be printed but it can be viewed and edited, even listed with GridView, before posting.

Sorry, you're correct. Import Adjustments does give you a chance to verify before posting live. I see it was implemented differently than importing Shipments, which definitely does not stop and posts during the import process.

I think you'll find that the adjustments are posted as they are imported, and that if you make a change to the batch you are looking at, then only the change (difference between what is in the batch you are looking at and the new number you've entered) is used to update inventory when you update the record.

I was wrong. Adjustments go to a batch for review and don't affect inventory until they are posted.

Sorry.

We did stockcount on August 31, 2008. The item valuation report as at August 31 2008 was printed on September 22 2008. What I have noticed is that I have an Average Unit Value, I have the quantity and then I have the actual cost. If I multiply the average unit value by the quantity I do not get the amount reported for actual cost for some items. Further, the average unit value for these same items is way out. If I divide the actual units by the actual cost I get the correct cost per unit.
Another problem is that the stock card shows a different quantity on hand than the August 31st report. I printed it again today for the August 31 2008 date and the particular item I am watching now agrees to the stock card and the average unit value agrees to the correct unit cost. I can not see where any adjustment was done to bring this in line.
Unfortunately there is not report that shows the quantity on hand and valuation after each transaction i.e. shipment, adjustment, receipt etc. I do not have Gridview.
Do you have any idea why the costs and quantity would vary for the same date. Especially when other items have retained the exact information as the earlier printed report.

That is similar to the problem I am having. And I must confess to being as confused as Laura is. Each time you print the item valuation report and back date it certain items change for either quantity or average value.

Does changing the stocking unit or category of an item affect the costing. I have one item which has materially changed from an average cost of $2.46 a lb to a negative cost. I have checked all the receipts and adjustments and they were done at the correct cost. The only change I can see is that the category has changed.
Another item costing unit was changed from case to each. The first report gave me a value of $1,660 per case, but the second report is giving me the correct value of $33.46 a case. The actual cost works out correctly.

If you backdate an Item Valuation report, there may have been transactions that have occured for an item between that back date and today. The report takes this into consideration and adjusts the Qty on Hand and Total Cost for the item, to calculate what the Qty and Cost would have been on that older date. In addition, the Avg Unit Cost is calculated as the Total Cost divided by the Qty on Hand.

If you see Costs and Avg Cost change for a backdated report as compared to a report as of Today, there has been at least one transaction between the report date and today.

Note that if any Transactions for an item have been purged out of IC History, or if processes such as Print/Purge the OE Invoice Audit List have not written the transactions to History, then any missing transactions will pretty much guarantee that a backdated Item Valuation report will not have the correct qty and/or cost.

Also if OrderEntry is used, if Day End processing has not been run then this also would give incorrect values for the Item Valuation report.

I would be very surprised to find that changing the Category would affect the costing information, as it only affects GL accounts for costs and revenue.

If you changed the unit of measure on the item, that has a potential of affecting the report, as Historical Transactions may use the previous units. Perhaps take a look at the Stock Card report, which will detail all of the historical transactions for an item between particular dates. The logic behind this report is the same as for a backdated Item Valuation.

When you say transactions have occurred would these transactions have included say shipments on an Order Entry invoice. If we had 200 units at August 31, 2008 and we had sales on September 15th 2008 for 50 units. Would the backdated report show 150 units as at August 31, 2008?

If you had 200 units on Aug 31st, sales of 50 units on Sept 15th, and have printed and purged the OE Invoice Audit List (which writes the shipments to IC Transaction History), then a report backdated to Aug 31st (or any date up to Sept 14) should show a qty on hand of 200 units.

It could only do this if the 50 shipments are in IC History due to purging of the OE Audit list report. If that hasn't been done, then the report will show 150 because it sees a current qty on hand of 150 and isn't aware that any transactions have happened after Aug 31st.

Hello:

It should give you 200.

Of course, that assumes all of the Sept, Oct, Nov and Dec transactions are still there and none have been purged.

I am confused. Should I be purging or not. The response from Softrak indicates that the audit list needs to be purged and then Bruce's response is using the assumption that no purging has been done.

Are we talking about two different purging?

Two different types of purging. I was talking about printing and clearing the invoice audit list in OrderEntry. Bruce was talking about not purging the Inventory History.