Friday, July 30, 2010

From the Newsgroups: What are those GL entries with reference SALESASMxxxx?

Welcome to another edition of From the Newsgroups.

The Microsoft Dynamics GP Online Partner Technical Community forum is one of those virtual places where you get to see and experience it all. One gets to become familiar with real life issues experienced by us partners keen enough to share our implementation and support issues. The following is a thread from the Online Partner Technical Community:

Good afternoon. Our customer keeps getting these "mystery" GL postings [SALESASMxxxx] and wants to know why they are being generated but I cannot find any article or search that shows this document prefix for GP. Does anyone know what type of doc this is and why it may be generated automatically into GL?


The answer comes courtesy of Tristan Thor Clores, a Microsoft Support Engineer.

For transactions that have the SALESASM prefix in their description: These may mean that a sales invoice with a shortage override of a top level BOM (also known as finished good) was posted at one cost. Then when the BOM that fulfilled the shortage was posted its unit cost was different from what the invoice held.

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Example:
Let's pretend that we have a $0.00 balance in the Inventory-Finished Goods account. An invoice was posted with a shortage override for 10 units of finished good item HARD DISK. Its unit cost is $10.00 and its unit price is $20. Its journal entry will look like the following:

Debit: Accounts Receivables $200.00
Debit: Cost of Sales $100.00

Credit: Sales $200.00
Credit: Inventory-Finished Goods $100.00

However, when a BOM assembly was posted for 10 units of HARD DISK, its unit cost was actually at $12.00 per base unit. Let's pretend that it has the following account distributions:

Debit: Inventory-Finished Goods $120.00

Credit: Inventory-Assembly Component #1 $50.00
Credit: Inventory-Assembly Component #2 $70.00

This journal entry will result in you having 0 units On Hand for the item but with a debit balance of $20.00 in the General Ledger. So now, Microsoft Dynamics GP will create the following cost variance journal entry to remove this balance and help your GL recognize the true cost of the sale. This change though will never hit Sales Order Processing history and so the SOP Document Analysis report will not print this additional cost and will then print an incorrect profit margin afterwards:

Debit: Cost of Sales $20.00
Credit: Inventory $20.00
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I would also like to share the following list with you. It is a list of the transaction reference prefixes that Microsoft Dynamics GP support engineers have encountered with cost variance journal entries so far:

1. BOM – assembly transaction
2. INV – invoice from the Invoicing module
3. IVT – inventory transfer
4. IVA – inventory adjustment
5. IVV – inventory variance
6. SALES – sales invoice from Sales Order Processing
7. PRTN – purchase return
8. MCTE – for a transaction that originated in Manufacturing Component Transaction Entry
9. MRCT – manufacturing receipt
10. MCLS – manufacturing close, including regular close and Quick MO
11. STCK – stock count variance
12. FSSC – field service Service Call
13. FSRMA – field service RMA
14. FSRTV – field service RTV
15. FSWO – field service Work Order
16. PA – project accounting
17. POP – close a PO line in Edit PO Status
18. RECON – created by Inventory Reconcile
19. CONV - created by an upgrade conversion
20. MCTERCT - If the items were issued in the Component Transaction Entry window and then the invoice is completed the adjustment will have a prefix of MCTERCT
21. MRCTRCV - If the items were issued in Mo Receipt Entry (they are "backflushed") and then the invoice is complete the adjustment will have a prefix of MRCTRCV.
22. MCLSRCV - If the items were issued in the MO Close process (the MO was partially received and more "backflushed" items were issued during the close) and then the invoice is completed the adjustment will have a prefix of MCLSRCV.

I recommend going through KB Article 869470 - "Cost Variance for Inventory," "Sales Order Processing," and "Purchase Order Processing" for mor details regarding cost variance in the system.

Let me know how this goes.


I hope you find this article very interesting.

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Until next post!

MG.-
Mariano Gomez, MVP
Maximum Global Business, LLC
http://www.maximumglobalbusiness.com/

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