¶ Compliance Inventory Reconciliation
In standard Microsoft Dynamics 365 Business Central, the monitoring of the reconciliation of the inventory and the work in progress is very difficult. Once you experience differences, it is almost impossible to get insight into the reconciliation.
The module Inventory Reconciliation provides the ability to monitor the inventory and work in progress, to reconciliate with the general ledger and to analyze differences. The analysis can be done in user-friendly and intuitive windows.
Besides the analysis of the inventory accounts the module can also analyze and reconcile the applied accounts (result).
To be able to use the Inventory Reconciliation extension, it is required to register the module after each installation.
Find here how to do this, should the question not arise during installation.
¶ Work with Inventory Reconciliation
In Business Central search for “Inventory Reconciliation”
Tip : bookmark this function
The default Date Compression is set to Month, but any other value can be selected (Day, Week, Quarter, Year, Period).
Under “Scheduler” toggle the “Process with Job Scheduler” to have the analysis started automatically as this process can take quite some time, depending on the data that needs to be analyzed. (be aware it could take up to a whole weekend for the first analysis)
Click on “Update” to start the analysis
The calculation is moving on from last processed entry before the notification.
After the analysis has run, there are a number of fields that have been updated.
- Last Date Updated VRE : this is the date the last booking in the sub administration was made
- Last Value Entry No : this is the last number of the sub administration entry bookings
- No. of Skipped Value Entries : if there are sub administration Value Entries skipped, this field will show a number. These entries can be viewed by clicking on that number
- Last Date Updated GRE : this is the date the last G/L entry was made
- Last G/L Entry no : this is the last number of the G/L entry booking
- No. of Skipped G/L Entries : if there have been skipped Ledger entries, this field will show a number. These entries can be viewed by clicking on that number
When there have been skipped entries, the screen when you clicked on the number in that field will show you the details of the skipped entries.
Click on the Entry number and it will show in short what the Entry was.
Click on “open the full list” which will then open the full list of entries and also show more details regarding that entry no.
Click on the different kinds of data to get deeper into that data.
¶ Reconciliate sub administration with the general ledger
Click on the button “Analyses Inventory Accounts” or “Analyses Applied Accounts” to start with the analysis of the reconciliation between the sub administration and the general ledger.
Both analyses pages can also be found directly by searching for “Analyses Inventory Accounts” or “Analyses Applied Accounts”.
Tip : bookmark these pages
¶ Reconcile Inventory Accounts with General Ledger
The “Analysis by Period” or “Analysis by Posting Group” can be found when selecting “Account”.
Select in the field “Show values according to” the required type of reconciliation to be shown. An analysis can be performed based on the historical reconciliation (Used Setup of Posting Groups during posting) or the current settings (Setup of current Posting Groups ).
The window shows per general ledger account the reconciliation between the sub administration [2] (the fields Inventory, Inventory (Interim) and WIP Inventory) and the general ledger [3] (field G/L Amount).
In the field Difference [4] you can see the differences.
On fasttab “Options” the reconciliation can be refined.
If the window Analysis Inventory Accounts shows differences the first (quick visible) possible cause is that the account is also used as applied account [1]. In case this is checked, reconciliation is harder to realize.
There are two other possible causes of differences, manual postings or other automatic postings, visible in the next fields:
- G/L Manual Entry Amount: the amount of manual postings on the G/L account
- G/L Other Non-manual Amount: automatic, by the system generated postings for which the system cannot find a linked value entry in the sub administration, e.g. compressed entries or postings from another sub administration.
If the amount of the manual postings and the amount of the non-manual postings are equal to the difference, the sub administration and the general ledger are reconciled completely. In other words, “Difference - G/L Manual Entry Amount entries - G/L Other Non-manual Amount entries” should always be 0.
¶ Reconcile Applied Accounts with General Ledger
In the window Analysis Applied Accounts you can analyse the reconciliation between the applied accounts and the general ledger accounts based on the reconciliation view.
Select in the field “Show values according to” the required type of reconciliation to show. An analysis can be performed based on the historical reconciliation (Used Setup of Posting Groups during posting) or the current settings (Setup of current Posting Groups ).
The window shows per general ledger account the reconciliation between the Applied accounts (the fields (1) Applied Inventory Amount, (2) Applied Sales Amount, (3) Production Variances and (4) Applied Purchase Amount) and the general ledger amount (field G/L Amount). The field Difference shows the differences.
If the window Analysis Applied Accounts shows differences, the first (quick visible) possible cause is that the account is used as inventory account (checkmark in that column). There are two other possible causes of differences, manual postings or other automatic postings, visible in the next fields:
- G/L Manual Entry Amount: the amount of manual postings on the G/L account.
- G/L Other Non-manual Amount: automatic, by the system generated postings for which the system cannot find a linked value entry in the sub administration, e.g. compressed entries or entries from another sub administration.
If the amount of the manual postings and the amount of the non-manual postings are equal to the difference, the sub administration and the general ledger are reconciled completely. In other words: “Difference - G/L Manual Entry Amount - G/L Other Non-manual Amount” should always be 0.
It is possible to trace differences to a certain period or posting group by analyzing the reconciliation of only one G/L account per period or posting group with “Analysis by Period”, “Analysis Production variance by Posting group” and “Analysis Applied Account by Posting Group”.
¶ Change the job scheduler
Default the job is scheduled to run at 1:00 AM.
The scheduled time and/or date can be changed in the Job Queue Entries.
Click on “Ready” for the following options :
- Set the job on hold
- Restart the job
- Run the job once
Should it be required to edit the scheduled task, the job first has to be ‘Set On hold’.
After setting the job on hold, choose on which days the scheduler should start, at what date and what time the job should start.
When the job has been set up as required, use ‘Set Status to Ready’ to activate the job.
