Performing a JD Edwards Dollars Only Inventory Adjustment in an Average Cost Environment
Let's discuss how to perform a JD Edwards dollars only inventory adjustment in an Average Cost Environment. When trying to maintain JD Edwards cardex integrity it is sometimes necessary to “adjust” the total value of the cardex transactions to match the amounts on hand. This can be due to rounding errors, manual overrides of transaction costs or incorrect average cost calculations.
Checking an items integrity in JDE is a matter of exporting all its qualifying cardex transactions to Excel and summarizing the quantities (in primary unit of measure) and extended amounts and comparing them to the stated on-hand value and amount. Qualifying transactions are those where column ILIPCD in table F4111 (cardex) is not equal to an ‘X’. The ‘X’ denotes a memo transaction and applies to work order scrap, lot releases, and certain warehousing movements.
When the quantities add up correctly and the amounts do not, it becomes necessary to perform a ‘dollars-only’ adjustment to bring things back in balance. In a standard cost environment, an ‘IA’ transaction is used to accomplish this. It is done on the vanilla transaction screen, with the user completing the item, branch, location, lot number and Extended Amount. No quantity or unit cost is entered. Once finished, there will be a dollars-only adjustment visible in the cardex with corresponding GL entries.
So why would this be different in an average cost environment? Well to answer this question we need to understand the impact of UDC table 40/AV. This user defined code table denotes which programs that impact the unit cost for average cost items!
The trick is to turn off adjustment program P4114 so it does NOT update the average! If it does, then the unit cost will be recalculated and the transaction will have no impact on the integrity issue. To turn it off, just change the second description value from ‘Y’ to ‘N’, it’s that simple! Now you can fix those pesky integrity issues.
Happy reconciling! If you have any questions on JD Edwards Dollars Only Inventory Adjustment in an Average Cost Environment or any other areas of JD Edwards, please reach out to us today.
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