Within this setup section of the inventory value report, users can chose among the following four parameters:
(Note that the first and last parameter are mutually exclusive)
If you only select the first parameter, the inventory value report will only show you a total quantity and amount for the resources (items) and inventory dimensions selected. Example:
If you chose the print total quantity and value parameter instead, you will get a breakdown of the total inventory values (quantity and amount) in a physical and financial section as illustrated in the next screenshot.
Activating the parameter “calculate average unit cost” results in the illustration of an additional column that divides the inventory values by their quantities.
Finally, the parameter “include not posted to ledger” ensures that also transactions that have not been posted to ledger accounts are incorporated into the inventory value report.
An example for “not posted to ledger transactions” are purchase order related packing slip postings provided that the following AP parameter has not been selected.
Within the last setup block, you can select one or more of the following parameters:
This parameter is always selected and cannot be deselected.
- Labor/indirect cost/direct outsourcing:
As illustrated before, the selection of one of these parameters allows reconciling WIP transactions that are for example generated when production routes are posted.
The level parameter allows you selecting either “totals” or “transactions”. Please note that the selection of “transactions” does have a significant influence on the time the report runs and should only be selected for a limited number of inventory transactions that need to be analyzed in detail.
- Include beginning balance:
The last parameter “include beginning balance” can only be selected if you selected “transactions” at the detail Level. Selecting this parameter allows you incorporating beginning balance inventory transactions from earlier years.
I hope that the blog posts on the inventory value report were able to give you some additional financial insights into the inventory value report and the inventory reconciliation process in general and look forward to seeing you in the next post on inventory reconciliation.