Reconciliation PIT

Reconciliation PIT


Often times when the perpetual on hand inventory at standard cost differs from that of the balance in the general ledger for the corresponding account some of the following scenarios are the cause.


  1. Transaction Date

Floor dispositioning and any other transactions that are back-dated to a previous days shift puts that previous date into the transaction date in the translog.  The stock inventory-as-of report is based on the transaction date as opposed to the system date (the date the transaction was actually performed.)  Other examples would be receiving items and adjusting the transaction date or performing manual adjustments and adjusting the transaction date.  When creating a shift report the transaction date used is the date of the production report; not the date that the user actually created the report and/or dispositioned the production report.

  1. Inactive Items

When marking an item as inactive there is not gl transaction that is performed if the item has a positive on hand value. Ensure that inventory items that have been marked as inactive have no on-hand inventory otherwise the cost of the on hand value needs to be included in perpetual inventory when comparing to the GL.  When marking an item as inactive there is not gl transaction that is performed if the item has a positive on hand value.


  1. Non conforming inventory

Inventory listed at the non conform status should be included in the total perpetual value as the system does not reduce the gl inventory account when toggled to that status.


  1. Miscellaneous Item’s GL Account on the AP Invoice

Confirm the general ledger accounts being used for miscellaneous items.  Typically the account is an expense account.  However, if the user coded the line to an inventory account then the general ledger balance for that account would be out of balance compared to the perpetual inventory for true inventory items with standard costs.


  1. Items classified incorrectly. 

The WP class for example may not have had the inventory account overridden in inventory under options-inventory accounts.  The system would then pick up the default inventory account which is generally the finished good inventory gl account.  There is a report called Inventory Value as of By GL Account that would list the items by the inventory account their transactions are posting to.


  1. Scanning

If you have Auto-backflush on RT scan to inventory checked, with each scan the perpetual inventory will be adjusted.  It will not be correct to the GL until the prod report is processed and PIT is ran.  Viewing perpetual to GL before this will show out-of-balance 


  1. Performing transactions in the incorrect Eplant

Ensure that users are logged into the correct eplant when processing transactions. If the translog transaction is not associated to the correct eplant the items will not show up in PIT.

  1. Transaction codes 

Gl account numbers can be assigned to a transaction code.  If the user selects a transaction code that has an account associated to it and also chooses to backflush materials then the trans code GL account will override the cost elements receive/dispo account which should be an inventory account for the inventory items involved in the materials backflush cause an out of balance situation.    


  1. Post Inventory Transaction screen

If the PIT Screen is open and transactions are posted to the same trans type and date range then the user processes the current transactions through PIT without resetting the filter then the inventory transactions will show as processed in the translog even though the corresponding entries were not actually processed.


  1.  Production Reporting- Phantom Item’s

When doing production reporting on an item that uses a phantom item. If the user adjusts the amount to disposition and selects to not pull any of the phantom material or the phantom components out of inventory then the system will credit the phantoms raw material account despite that there was no material pulled out.


  1. Asset Management Modules-Preventative Maintenance and Project Manager

Currently the system does not post to the general ledger for any consumed materials from either the preventative maintenance or project manager modules.  The user should verify if items on the inventory reports are consumed through these modules and if they are and they do have standard costs then the gl should be adjusted using a general journal entry or the user can choose to exclude the totals from the total on the report.



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