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Historical Inventory Trial Balance

  • 1.  Historical Inventory Trial Balance

    Posted May 15, 2020 04:29 PM
    We have been trying to use the HITB to tie into our inventory and we are having a ton of issues. We used to use the HSS but it no longer works for us. We have run the HITB reset and posted the GL entries with the assistance of our GP consultants but our issues are not resolved. Does anyone know a HITB EXPERT who can help us?

    Thanks,

    Brian Domville

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    Brian Domville
    Finance Manager
    CDE Services Inc.
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    Academy - Online Interactive Learning from Experts


  • 2.  RE: Historical Inventory Trial Balance

    Posted May 18, 2020 07:38 AM
    I don't have any HITB expert recommendations , but i do know that we have the same issues. After we did the reset i was able to narrow down some of our problems to our manufacturing batch third-party add-on creating rounding differences and our PO processing of raw materials receiving inventory at a price that doesn't match invoice price, the HITB will not associate the difference with the inventory item. I have to do a reconciling entry every month.

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    Chastity Castle-White
    The F. L. Emmert Company
    Cincinnati OH
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    Academy - Online Interactive Learning from Experts


  • 3.  RE: Historical Inventory Trial Balance

    SILVER CONTRIBUTOR
    Posted May 18, 2020 09:13 AM
    Last year​ at Summit I believe several presentations focused on how to successfully use the HITB (it does take discipline and work); I believe Sandy presented one of them.

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    Al Schuette
    Senior Business Consultant
    Heartland Business Systems
    Little chute WI
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    Academy - Online Interactive Learning from Experts


  • 4.  RE: Historical Inventory Trial Balance

    Posted May 18, 2020 10:07 AM
    Yes it does take discipline ...
      Discovering what is contributing to the differences between inventory value and what the HITB value shows is important.
                                   There were even items showing a value in the HITB yet there was no inventory on hand anymore.

     A couple of reasons that caused the issue for us were:
    • Rounding issues --> extending the decimals of the cost out helped resolved
    • Knowing your valuation Method: -->We are on Average Perpetual, so we had issues when our warehouse would fulfilled the orders before the inventory was received/posted.  When that order would be invoiced -- the costs would show from the pre-existing average costs, not the new average cost.
      • This problem was also affecting any costs/profit reports based on the invoices by using the costs listed on the invoices.
               -- solution --  look at your process flow and do not fulfill/invoice orders when the inventory has not been posted yet.

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    Elaine Ward
    Bollin Label Systems
    Toledo OH
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    Academy - Online Interactive Learning from Experts


  • 5.  RE: Historical Inventory Trial Balance

    Posted May 18, 2020 10:15 AM
    ​Thank you Al.  Yes, I did.  And this year I hope provide a session with new and additional knowledge gained thru this year on HITB tips.

    Chastity,
    It is possible to setup your GP system to revalue the layers based on PO price different from the receiving price and those can be represented on the HITB report.  Of course, some of this depends on your third party manufacturing system of use.  Some of them support this function, and others do not.  I would be happy to discuss further if you would like to do so.

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    Sandy Wickman
    Senior Business Consultant
    LBMC
    Austin TX
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    Academy - Online Interactive Learning from Experts


  • 6.  RE: Historical Inventory Trial Balance

    Posted May 18, 2020 08:23 AM
    ​Brian,
    I have successfully deployed and helped many companies to use the HITB to consistently reconcile their inventory to the GL and would be happy to provide assistance to your organization.  There are several things I can suggest both from a setup perspective, and from ongoing review that have proven to be the success factors to rely on.  Please reach out if you would like to discuss further.

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    Sandy Wickman
    Senior Business Consultant
    LBMC
    Austin TX
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    Academy - Online Interactive Learning from Experts


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