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MO receipt to inventory - No JE created

  • 1.  MO receipt to inventory - No JE created

    Posted Mar 03, 2020 11:41 AM
      |   view attached
    Hello, I am new to GP and found something I consider very odd. I have an MO for sub-assemblies that were received to inventory and the MO was completed and closed but there is not a single JE in the system associated with this MO. Please see attached documentation.

    The sub-assembly was received to inventory on 2/15/20. I verified in the item stock inquiry that the 1,000 parts show as on-hand. However, when I look at the Manufacturing Order Activity, it does not show any associated JE's in my general ledger for receiving the parts to inventory and looking at the Item Transaction Inquiry, I do not show this transaction and an associated unit cost. As a final verification, I also went to a Smartlist we created to identify all JE's associated with an MO and there are no results returned.

    This leaves me with a couple questions:
    1. How is it possible that the system can move parts from an MO to inventory and NOT make the corresponding JE?
    2. Since the parts are on-hand but without a costing transaction, will this cause a problem with the FIFO layers or will the system simply transact these parts with a value of $0.00?

    Thank you in advance for any insight!
    Virginia






    ------------------------------
    Virginia Joseph
    Ideal Deals, LLC dba Ideal Aluminum Products
    St. Augustine FL
    ------------------------------

    Attachment(s)

    Academy - Online Interactive Learning from Experts


  • 2.  RE: MO receipt to inventory - No JE created

    TOP CONTRIBUTOR
    Posted Mar 04, 2020 08:41 AM
    Hello Virginia,

    Welcome to GP!

    I can think of a few things for you to check out...

    Your Journal Entry might be sitting in an unposted batch, was accidentally deleted or was never created.  GP gives us the option to either automatically post the journal entries or not post them (leave them in an unposted batch).  It also gives us the option to not post to the General Ledger at all (it won't generate a journal entry).

    I suggest finding someone in your organization that is experienced with GP and have them check the settings in Tools > setup > posting > posting  > series = inventory  >  origin = transaction entry.

    If there isn't anyone, go ahead and post screenshots of this window for the community to help.

    I bet your FIFO layers are fine.  You just need to figure out what happened to your journal entry.

    Chris

    ------------------------------
    Chris Donnelly
    Sr Mgr of Info Systems and Financial Reporting
    Healthmark Industries
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 3.  RE: MO receipt to inventory - No JE created

    Posted Mar 05, 2020 08:05 AM
    Hello Chris, Thank you for the advice. I have verified that the JE is not in an unposted batch and the posting set-up is set to allow inventory transaction to post through general ledger files.


    ------------------------------
    Virginia Joseph
    Ideal Deals, LLC dba Ideal Aluminum Products
    St. Augustine FL
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 4.  RE: MO receipt to inventory - No JE created

    TOP CONTRIBUTOR
    Posted Mar 05, 2020 08:37 AM
    OK.  Let's dig deeper.

    Here is a SQL script that will help us find the journal entry if it was created.  If you know how to run it, great.  If not, have someone from your IT department run it and post the results.

    select * from gl10000 where REFRENCE = 'MO-MO0097132'
    select * from gl20000 where REFRENCE = 'MO-MO0097132'

    If you prefer to do this off-line, feel free to email me at cdonnelly@hmark.com

    Is it possible that all of your components came into the MO with zero cost and you don't capture any other costs (i.e. labor)?  Your screenshots don't show the cost of the components.

    Chris


    ------------------------------
    Chris Donnelly
    Sr Mgr of Info Systems and Financial Reporting
    Healthmark Industries
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 5.  RE: MO receipt to inventory - No JE created

    SILVER CONTRIBUTOR
    Posted Mar 05, 2020 08:46 AM

    Hi Virginia,

    I echo Chris's comment - welcome to GP!  You have joined a fine community of sharing folks, 50k companies (some say), and lotsa manufacturers!

    So... as we found in a shared session just now, there are several things going on here:

    • No raw material is being issued (no inventory transaction) for some reason, while the FG is being received (inventory transaction).
    • While the component is flagged for backflush on the BOM, and a manually-transacted MO in fact does issue by backflush and looks fine, something is going on 
      • We found that the MOs with this problem (no raw materials issued) had the component "unchecked" for backflush on the Picklists (all were closed so we could not reverse the MO receipts).
      • Is it possible that when these MOs were created, that the component was not checked for backflush on the BOM?  We saw that the BOM component record had been saved on 2/11/2020 and the MO activity in your screenshot was all prior to then – could you check the other MOs you cite for their processing dates – are any after 2/11/2020?
      • Is it possible that someone unchecked the Picklist on the MO?  Might someone have done that? 
      • Or is it possible that the scangun client activities (the MO receipt is done on the floor with a scangun) are causing the MO's Picklist to be unchecked for backflush during the MO Receipt?... 
        • We had a shared session with HighJump just now (at this point, yesterday afternoon), they did a fine job of testing with us, the scanguns and their software have nothing to do with the current problem. 
        • Thank you, HighJump - and especially Addam Hall, who hosted & helped us work the problem/issue - he "gets it" re: GP Mfg, a refreshing resource (Not a HighJump commercial, just appreciation)
    • Further testing and investigation could help isolate the root cause of the no-RMs-issued-by-backflush.   
    • Also, an exception report is being developed to identify MOs that have similar problems.  There are multiple modalities of this so we'll spare you the details
    • Other questions are being researched…
    The JEs you see appear to be coming from rounding in the MO processing transactions, a currency and perhaps decimal precision issue.

    More investigation warranted to optimize your setups and how they flow thru the financials.

    I hope this helps.  Happy to help if further guidance is needed.  Others may have more responses, we all look forward to what might come in.



    ------------------------------
    Fred Hartman
    Principal
    Hartman Consulting - specializing in GP Manufacturing Solutions
    Wilmington DE 302-479-5068
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 6.  RE: MO receipt to inventory - No JE created

    TOP CONTRIBUTOR
    Posted Mar 06, 2020 08:49 AM
    Yes, Virginia, there is a Santa Claus.  And, there is a GPUG cavalry!  Nice job Fred.

    Happy Friday everyone!


    ------------------------------
    Chris Donnelly
    Sr Mgr of Info Systems and Financial Reporting
    Healthmark Industries
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 7.  RE: MO receipt to inventory - No JE created

    Posted Mar 06, 2020 11:42 AM
      |   view attached
    So after speaking with Fred, it looks like GP processed MO0097132 as would be expected. There was not an associated JE transactions when the part was received into inventory because there were not any raw materials issued. (This subassembly is to be backflushed but the backflush checkbox was accidentally unchecked.) $0.00 costs into WIP and $0.00 costs out of WIP so the system did not create a JE and put the sub-assembly into inventory at $0.00.

    But this leads me to another question. Why would 4 other MO"s for the same part number, with the same scenario of RM not being backflushed behave differently? For the other 4 MO's, the system DID create JE's associated with the receipt to inventory and assigned a value to the part when it was received into inventory and resulting in negative WIP. IF there were no raw material costs to tell the system how to value the parts in inventory, why weren't the parts put into inventory at $0.00 like the previous MO?

    I understand the logic for costing is complicated and can be greatly impacted by things being done in the proper order, but in this situation it is a single raw material required to make a single sub-assembly, and requiring only one operation and the material should backflush. The only thing that didn't happen is the backflush and as far as I can tell, the MO's are set-up and were received into inventory in the same manner.

    Please see the attachment to walk through the steps I used to investigate this.

    Thank you for all your help and I am looking forward to learning more from all of you! TGIF!

    Thanks,
    Virginia

    ------------------------------
    Virginia Joseph
    Ideal Deals, LLC dba Ideal Aluminum Products
    St. Augustine FL
    ------------------------------

    Attachment(s)

    Academy - Online Interactive Learning from Experts


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