Reset the Inventory to Zero

OBJECTIVE

The purpose of this exercise is to reset the quantities, average costs, and inventory values .

The reset option is used in the following situations:

  • You want to reset the inventory to zero (Quantity and Average Cost) and start over.
  • The average costs in the system are mostly incorrect.
  • The general ledger does not balance at all with the backup inventory.
  • The information in the Reservation or Serial Numbers fields is inaccurate and must be deleted.

 

This procedure should only be used if you are sure you want to delete the entire inventory from the system before entering the actual quantities on hand.

 

You can reset the inventory in the following option: 

 

maestro* > Purchasing > Inventory > Processing > Physical Inventory Count

 

PREREQUISITEs

 

BEFORE YOU Begin

Checking the Physical Inventory Count Configurations

When you transfer the physical inventory, an inventory-to-project transfer transaction is created to adjust the inventory. The offset of this transfer affects the project used to adjust the physical inventory.

  1. Access the Configuration option.
  2. This option can be accessed in the Purchasing module, Maintenance, Purchasing section.
  3. From Configuration, click in the menu on the left in the Inventory section.
  4. From the Inventory section, make sure that a project, activity and group are defined in the Physical Inventory Adjustment section.

 

This information will be used when the inventory is reset to zero.
  1. Save the changes and Quit Configuration.
  2. Make sure that inventory transactions have been finalized by users and they were transferred on the reset date.

 

Inventory operations include: Receipt of Goods, Inventory to Project Transfer, Inventory-Site Transfer, Enter a Sale (if integrated with inventory) and Purchase Order Invoicing.

There are two methods for making sure there are no transactions of these types pending transfer:

  1. Using the Transfer Report.
    1. This option can be accessed in the Accounting module, Maintenance, Accounting section.
  2. Using the Transaction Transfer option.
    1. You can access this option by clicking the Transaction Transfer icon in the main menu.

 

Only administrators can check the transactions of all users.

 

Stop entering inventory data during the physical inventory

 

Steps

Reseting the inventory

  1. Access the Physical Inventory Count option.
  2. Generate the inventory reset transaction.
    1. Select the date for the reset.
    2. Enter the filter settings according to your needs:

     

    If there are many parts in your inventory, we recommend dividing the transactions into several parts. To do this, you must enter values in this section. Once the process has started, you cannot stop it. The processing time varies based on the number of items in the catalogue.

    1. Select a site

     

    If you do not confirm the site in the system, you can also leave the site field empty to reset all of the inventory.
    1. Specify whether or not items with serial numbers should be reset. If you check the box, the system deletes all serial numbers from inventory and you will have to re-enter them. If not checked, items with serial numbers will not be reset.
    2. Specify whether or not items with reservation numbers should be reset. If you check the box, the system deletes all reservation numbers from inventory. If not checked, items with reservation numbers will not be reset.

     

    Be very careful before you enable this option. The system may need these reservation numbers to ensure the integrity of future transactions. Items with reservation numbers should only be reset if you are certain that the reservation numbers in the system are no longer relevant.

    If necessary, after deleting the reservation numbers, you can also re-enter them manually using the Material Reservation option. However, this can be a tedious operation.

    1. Click the Complete Breakdown Table icon.

     

    Check that the items displayed in the grid match your criteria before proceeding because it will be impossible to reverse the transaction after transferring.
    1. Click the Reset column “Actual Qty” to Zero icon.

     

    At this stage, the system sets the actual quantities to zero. The Difference column displays the inverse of stock quantities (positive or negative as the case may be).

    1. Change the status to Confirmed.
    2. Click the Transfer icon and answer YES to the question: Do you want to save the changes if you have not saved the transaction earlier?

    Another question is displayed: Do you want to transfer the physical inventory?

    If you answer Yes, an inventory-to-project transfer transaction containing the lines needed to reset the inventory will be created and transferred.

    After completing this step, all items in the inventory that matches the selection criteria are reset.

    1. Repeat steps A to F for all sites.

     

    If inventories are not tracked by site, go to step 3.
    1. If the inventories are tracked by site and confirmed, after resetting the inventory for each site, we recommend temporarily removing the confirmation of sites and repeating steps A to F without specifying the site. This ensures that there are no quantities in the inventory of an empty site.
    2. Complete the Site Validation function in the Configuration - Purchasing optinon.From Configuration, simply click in the Inventory menu on the left to access this field.
     

    maestro* > Purchasing > Maintenance > Purchasing > Configuration

    From the Configuration dendrogram on the left, click on Inventory to access the Site Validation section.

     

    It is important to re-activate the Site Validation setting after resetting the inventory, if the inventory is tracked by site.
  1. Print the Misc catalogue lists.

This step consists of printing an inventory report to ensure that the inventory quantities and values have been reset to zero.

Depending on the accrued costs reconciliation method, the reports to be printed and checked are not the same.

Managing inventory without accrued expenses

Managing inventory with accrued expenses

Print report 306 - Comparative Value of inventory.

  • The report must be requested with all sites.

    • We recommend sending the report with “Dynamic Vector-Based Analysis” output so that the user can sort the report by site.

Print report 307 - Comparative Value of Inventory with Accrued Costs.

  1. Check the inventory quantities and amounts shown on the inventory reports.

 

If there are still quantities, you must repeat steps 1 and 2.

 

 

If amounts are shown on the report, you must check whether accrued expenses exist or not. If yes, the accrued expenses amount should cover the value of the remaining inventory. In this case, no accounting entry will be required.

If there are no accrued expenses, the inventory amounts must be zero. The following procedure must, therefore, be performed:

To reset the values of inventory shown on report 306 - Comparative Value of inventoryor 307 - Comparative Value of Inventory with Accrued Costs:

  1. Access the Inventory Adjustmentsoption.
  2. This option can be accessed in the Purchasing module, Inventory sub-module, Functions section.
  3. Enter the items that must be reset manually, specifying that quantity and unit price necessary to reverse the quantities and values still on the reports.

Remember to include all of the information needed to completely reset the item (Unit, Site, Location, Characteristic).

  1. Enter the identification numbers as well if necessary, if you have decided to reset items with serial numbers.
  2. Enter the reservation numbers as well if necessary, if you have decided to reset reserved items.

 

This step does not affect the general ledger. A manual general ledger entry will be required after the adjustment.

  1. Transfer the adjustment transaction.
  2. Reprint the inventory reports mentioned in step 3.

 

At this stage, there should no longer be any quantities or values on the reports, unless the accrued expenses option is enabled (see the note above about this).
  1. Print the Trial Balance and make the necessary adjustments to the general ledger.

 

Confirm the general ledger amount for the inventory account. This amount should be reset to zero.
  1. The entry to correct the general ledger must be created in one of the following options:
  1. Post Journal Entries OR
  2. Advanced Project-to-Project Transfer, if financial statements are presented by project.
  1. Transfer the entry.
  2. Compare the trial balance to the miscellaneous lists from the catalogue mentioned in step 3.

 

At this stage, all amounts must be zero.

 

See also

 

Last modification: November 07, 2024