Reconciling inventory at month-end can be a daunting task as it is, even more so in an unfamiliar system with no way to know where discrepancies come from. AX 2012 makes the process easier with the use of canned reports that are geared for reconciliations and identifying missing transaction, and as long as you know what you’re looking at, this can make life much easier. Two major components are part of this process: 1) Report on Inventory value and 2) Investigate misstatements. Once that has been completed, you can make appropriate adjustments to close the books.
The first task to complete is reporting on the value of inventory. This is done using the Inventory Value report. A second report, Potential Conflicts: Inventory and G/L, is used pinpoint what likely caused misstatements.
Navigate to inventory and warehouse management>setup> costing> inventory value reports to create a report ID that strictly values the inventory. The picture below displays the necessary setup. Although this will vary by company, it is imperative that you make the selection to show totals for resource group (Item group) so that you can verify those totals with GL accounts.
Run inventory and warehouse management>reports> inventory value with the following parameters (using the report ID created in the previous step):
Since the InvVal report ID is set to total resource group (item group), you can then verify each of the item group totals with their respective GL account totals
To see GL account totals, navigate to General Ledger>common>Trial Balance. Make sure that the parameters of the Trial balance are set to the correct date range for the reconciliation.
If the Inventory Value report identifies a difference between GL and inventory values, run Inventory and warehouse management> reports>inventory value>potential conflicts report to identify what caused the imbalance. The report was designed to check for the most common issues that cause discrepancies between GL and Inventory values.
Set the parameters of the report to run for the main account in question. You can also filter by item number, voucher or posting type using the select statements
This report will narrow down the imbalances so that the investigation of the accounts is less time-consuming
Once both reports are generated, you can use them to determine what General Ledger accounts need to be investigated further.
Steps to investigate a suspected misstated account in AX 2012:
Add posting type field to the grid display on the Main Accounts’ Posted Transaction form
Note: you will only have to perform this step once
a. Navigate to General Ledger> Common> Main Accounts
b. Search for the main account you would like to look at
c. Click the Posted button, located in the Journal Entries area on the main accounts tab.
d. Anywhere inside the grid, right click with your mouse and choose Personalize from the menu that appears
e. In the Layout area of the Personalization form, make sure the Overview and Identification menu items are maximized. You should also make sure that the General and Type menu items are maximized.
f. Drag and drop the field labeled Posting Type from the Type menu item to the Identification menu item.
g. Once you’ve dropped the Posting Type field in the Identification menu, you can use the Up and Down buttons to move the field to the position you would like it to show up on the grid.
Note: I positioned the field after Date and before Type
You may choose to Save the form personalization, but it is not required. At this point, you can just close out of the Personalization form.
Note: you may have to close out of the Posted Transactions form and come back in to see the updated form
Now that you’ve added the Posting Type field to the grid view, you will be able to sort and filter the posted transactions appropriately
Start by clicking the grey box labeled “Posting Type” at the top of the grid. Click it once more to make sure the Posting Types are grouped together. You will know you have sorted correctly if a small black triangle appears in the Posting Type box
Now use the CTRL+G keyboard shortcut to insert the filter in Grid
In the Date search box, use the range syntax (..) to filter for a specified range of dates. For example, if you want to filter for all transactions posted in January of 2013, you should type 1/1/13..1/31/13 into the box, and press Enter on your keyboard
Now the grid will display only January 2013 posted transactions, and they are sorted in order of their Posting Type
Click anywhere inside the Grid, and use the hotkey CTRL+T to export the list to Excel
Once the list has been exported to excel, you can perform an analysis of the transactions based on the Potential conflicts and inventory value report.