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JD Edwards ST/OT transfer orders are used to move materials between branch plants (A to B) within the same company and employ the use of a clearing account to hold the value of the goods while they are in transit. This JD Edwards balance sheet account differs from a perpetual account because while the goods are in transit the quantities on hand “disappear” from the perpetual counts and only remain as a balance in the clearing account.
But what happens when an “unbalanced” transfer order is executed? In other words, the quantity or amount received does not match what was shipped, yet both orders have been closed! Since the definition of goods-in-transit is quantity shipped minus quantity received, any unbalanced transfer will live in perpetuity in JD Edwards as there is no easy way to balance the transactions.
This becomes an issue when trying to reconcile the In Transit GL account. How can this situation be identified? What, if any, adjustments need to be made? This is where the exclusion process built into the RapidReconciler product comes in to play. Consider the scenario below:
For these 2 items, notice the receipt quantity offsets the shipped quantity exactly, but the receipt amount is greater than the amount shipped. Also note that the status on both the ST and OT orders is 999, meaning no more processing can be done in JD Edwards!
But wait! There is a process in RapidReconciler know as order “Exclusion”. Flagging an order using this feature will summarize the amounts in the variance calculations the proper offsetting journal entry can be made.
In addition, the In Transit As Of data will list any individual exclusion in the transaction details!
Using RapidReconciler to exclude unbalanced transfer orders has proven to be a valuable addition to the reconciliation process. You know have the ability to track, correct and if necessary, exclude orders to balance your GL account. Let us know if you have any questions about JD Edwards ST/OT Transfer Orders or RapidReconciler. As always, happy reconciling!
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