There are multiple ways to reconcile sub-ledgers to the GL in Dynamics GP, the Reconcile to GL routine being one of my favorite, but there can be times when you’re still stumped wondering what happened?
I had a client recently face this situation. They ticked and tied every transaction to the GL, but their Inventory still did not balance to the GL. In the end, it all came down to a sales return transaction. The quantity being returned went into the Returned bucket instead of On Hand.
When the inventory is put into the Returned quantity field, it changes the distributions for the transaction and puts the distribution type as “RETURNS” instead of “INV” if it were put back in inventory.
If you’re using the Inventory Historical Stock Status report in an attempt to reconcile, the quantity returned will not hit this report.
To fix it, an inventory transfer needs to be entered to take the quantity out of the “Returned” bucket and into “On Hand.”
- Navigate to Inventory > Transactions > Transfer Entry
- The Document Type and Number will default
- Change the Date to a time during the period you’re trying to reconcile inventory to GL.
- Enter the site in the Default Site From and To
- Select the Item Number and enter the quantity that was entered on the return transaction.
***Note: The Unit Cost displays the current cost of the item and it cannot be changed.
- Click on the Quantity Type button at the bottom of the window
- Under the From Site field, there’s a Quantity Type drop down menu. Select Returned.
- Under the To Site field, there’s another drop down menu. Select On Hand.
- Click OK to close the Item Transfer Quantity Type Entry window.
- Post the Item Transfer transaction.
The returned quantity will now be reflected on the Inventory Historical Status report.
Need help with reconciling other sub-ledgers to your GL in Dynamics GP? Contact FMT Consultants by filling out the form below.