Inventory Analysis

Overview

As part of the Month-End closing processes, one of the steps is to reconcile the GL Inventory Balances with the Inventory Valuation report. These numbers should match under normal circumstances. At times, some anomalies might occur where these two numbers are out of balance.

If this occurs, use the Inventory Analysis function to quickly find out which Document No. is out of balance. Once you have Document No. to research, you will be able to find the cause of any differences.

Conducting Inventory Analysis

Put a check in the Inventory Account field for all GL accounts that are used to track Finished Goods, Subassembly, and Raw Material inventory.

Do not check the Inventory Account field for the Work In Process GL Account because it does not have a sub-ledger.

If the Inventory Account column is not editable, you can edit the GL Accounts page layout to display the field.

Open the Inventory Analysis function.

You will need to create the Inventory Analysis tab if you cannot find it on App Launcher.

To initialize the table, click Mass Delete All Records to delete all existing entries. Then click the Run GF Analysis button.

Enter the Start Date and End Date for the time frame that you will be analyzing. Click Run Analysis to start the process.

The Start Date typically is the month that the inventory balances are out of sync. Before you analyze the month, confirm that the ending balances of the month before are in sync. If not, you will need to analyze and correct the previous month’s ending balances first.

GoldFinch will compare entries in the GL Entry table with entries in the Cost Entry table, group them by Document No., and insert entries with the differences in the Inventory Analysis table.

If a GL Entry, or a Cost Entry, is linked to a Work Order, Work Order No. is used instead of Document No. to compare.

You can then use Document No. to look for the root cause of the issue.