Reconciling Inventory, what really happens?

I’ve seen this question come up a couple of times lately, even here at the GPUG 2011 Summit. I have some good information about the details of the inventory reconciliation process so I thought it might help to pass it along to everyone.

The Inventory files involved in the reconcile are:

• Purchase Receipts (IV10200)
• Purchase Receipts Detail (IV10201)
• Item Master (IV00101)
• Item Serial Number Master (IV00200)
• Item Quantity Master (IV00102)
• Item Lot Number Master (IV00300)
• Item Vendor Master (IV00103)
• Inventory Transaction Amounts Work (IV10001)
• Inventory Serial and Lot Numbers Work (IV10002)
• Item Site Bin Master (IV00112)
• Inventory Transaction Bin Quantities Work (IV10003)
• Inventory Transaction Bin Quantities History (IV30302)

Additional files outside of Inventory are involved in the reconcile if modules Purchase Order Processing, Sales Order Processing, or Invoicing are loaded.

The files outside of inventory that may be involved are as follows:

• Purchase Order Line (POP10110)
• Purchasing Receipt Line Quantities (POP10500)
• Sales Transaction Amounts Work (SOP10200)
• Sales Serial/Lot Work and History (SOP10201)
• Invoicing Transaction Amounts Work (IVC10101)
• Invoicing Serial and Lot Number Work (IVC10102)

The Reconcile process goes like this:  

1. The quantities are reconciled first between the Purchase Receipts and the Item Serial Number Master file.
2. Then the Purchase Receipts and Item Lot Number Master files are reconciled.
3. At this point, the quantities are reconciled between the Purchase Receipts file and Item Quantity Master file
4. Reallocating of Inventory Transaction Amounts Work, Inventory Serial and Lot Numbers Work, Sales Transaction Amounts Work, Sales Serial/Lot Work and History, Invoicing Transaction Amounts Work and Invoicing Serial and Lot Number Work tables is done next.
5. The On Order quantities are determined for the Item Quantity Master and Item Vendor Master tables by comparing them to the Purchase Order Line and Purchasing Receipt Line Quantities tables.
6. The last step in the reconcile is to reconcile the quantities on each of the items’ individual quantity location records to the total quantity record for that same item.

This information is available in Article ID: 874220.
I created a picture for my slides:

I hope this is helpful!

Live the Dream!

Leslie Vail