Distribution, Manufacturing, and Internet Modules

[T-storm]

I am wondering if the attached process will allow our client to achieve their desire to convert average cost inventory items to lot valuation while maintaining the same item number. They will be moving all the inventory and performing a physical inventory at the end of this month which will provide an ideal opportunity to “zero out” the inventory prior to the valuation change and reenter the inventory to include lot numbers. My concern is whether there are other considerations or potential problems in this valuation change. 

1. Freeze items in 00X.
2. Using Visual Integrator (VI), extract a list of the frozen items (Item Number only) from IME (IM.PHYSCAL / I/M Physical Inventory File). Add the valuation code “5” for Lot valuation to the second column of the VI.
3. Process and update the Physical Count variance Register. This will “zero out” the inventory for the list of frozen items and provide an accounting of the inventory from warehouse 00X.
4. Using VI, import the items from the file created in # 2. Above to IM1 (IM.ITEM / I/M Inventory Item Masterfile).
5. Reenter the inventory using Physical Count Entry – to include new lot number(s) – either manually or through VI.

NOTE: Check update in IM1 – item should now be Lot Valuation. Also, transaction history before the change to Lot valuation is listed without a lot number when Lot/Serial button is selected.

NOTE: Review availability of lots in Inventory Maintenance, test in SO, Shipping, PO, and BM. Review Production Entry into newly created Lot items.

[mas90guru]

You probably know this so I'm posting for the benefit of anyone else who may stumble across this message thread:

Generally changes to inventory valuation shouldn't be made without consulting your CPA. In some instances you may be required to obtain permission from the IRS in order to make a change in your inventory valuation.

[SPyle]

Is there a reason you cannot use the Inventory valuation change procedure in IM->Setup->Inventory Management Utilities?

You should be able do to a VI of the lot numbers and when you run the register, it would provide the appropriate audit trail of what was performed.  This would also help to ensure that all of the appropriate indicators and dependent records were changed.

[BigLouie]

T-Storm I would NOT use that method. Here is what I would do:

1. Post all SO Invoices

2. Post all Purchase Order transactions.

3. Run a report of all Average items on hand.

4. Freeze those items

5. Update Physical Count. (This will zero out the quantity)

6. Go into Inventory Utilities - Change of Valuation.

7. Enter change of valuation.

8. Process.

9. Check items in maintenance to make sure.

10. You may need to changed the default in the product line maintenance.

11. In Inventory Transaction do a receipt of goods.

12. Post

13.Print out Detail Transaction Journal.

14. Make a journal entry tranferring dollar amount that was posted to Purchases Clearing in step 12 and move to GL account used to post the Physical Count Variance amount to.

[T-storm]

There are a number of reasons I am pursuing this stragegy:

1. The items are currently "Kit" product type (this has been set up this way for quite a while - not a legitimate "kit" nor reason for that valuation - just the way I found it)."Kit" does not allow "Lot" as an option.
2. The item numbering scheme does not lend itself to a range selection -so the utility would require several selections.
3. They are okay using "finished goods" as the product type, and that can be changed at any time - it is not grayed out regardless of quantity or activity.  That said,  there are a lot of items so it would really mean two passes through the data - same as #2 above.

That said I am now reconsidering a VI into the Utility files rather than directly into IM1. 

Since there are currently no lot numbers in MAS, I am wondering what you mean by, "You should be able do to a VI of the lot numbers and when you run the register, it would provide the appropriate audit trail of what was performed."

Thanks!