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View Full Version : Differing dollar figures in G/L and Inventory


jeffstuber
07-10-2001, 03:02 PM
I am the Office Administrator and owner of a lighting showroom in Michigan. We have been using Peachtree since we opened in 1995, started with Peachtree Complete for DOS v8.

We've entered our inventory in the Inventory module, and use the Sales/Invoicing to move product from Inventory and Purchase Order into Inventory. The problem we have had almost since day one is that our General Ledger figure for our Inventory differs from the Inventory Modules figure. Yes, I did put the Inventory modules dollar figure into the General Ledger when we started.

Consistently, after taking a physical inventory the dollar figure between the two modules has always been off. We've had as small of a difference as $635 to as large as our current difference of nearly $70,000. My General Ledger is understated by that amount.

Does anyone have any logical explanation as to why this is occuring? A tech support person at Peachtree told me perhaps it is in the rounding during valuation computation. I hardly believe that if I'm only using dollars and cents in my costing that I could incur a 70k difference in math.

westphal
07-27-2001, 08:46 AM
I recently switched to Windows V8.02 but used the DOS version for 13 years. I found that some of the discrepencies occurred when items were received at a different price than shown on the Purchase Order, even though you could change the price when posting receipts it didn't go to GL that way. Also sometimes for no apparent reason Invoicing did not show the item removed from stock and so the inventory GL transaction didn't get created. I would check with an authorized support center to see if they've ever encountered this problem, because it's a huge amount to be off in GL and trying to do a physical inventory every month to see if things jive would be pretty time-consuming. I know if a great DOS support person if you would like her name.

tgeorge
01-21-2002, 01:23 PM
i have used PCA for dos since we opened in nov 1993, and have had the same problem. I believe I have attributed it to "operator error"....
We have over 14,000 inventory items, and sell via purchase orders, and walk in sales, and mail order....moving alot of items!!!
at one time, i purchased in standard packs, and changed selected inventory items to reflect that (conversion factor). But when i wanted a SINGLE item from a wholesaler, the sys thought i wanted 12/24/48 more. Upon receipt, i had OODLLES (sp?) more. Considering valuation, etc, there's the problem. Also, I bought fixtures (non inventory) and inadvertently charged them to inventory..... I have tracked and tracked PCA and found no errors...only ones of my own making.
hope this helps.

jag
01-21-2002, 06:53 PM
IMHO,

I think what Westphal is telling makes lot of sense to me. Adding that to the "human error" issue you can explain some of the differences.

The $70k is the difference now?... after how many years?

Also, you got to remember that you got to post everything to the G/L, in order it to be updated. Sometimes people check the G/L while having unposted transactions.

HIH,

jeffstuber
01-22-2002, 07:55 AM
I am investigating the possibility of operator error, but I really don't think that is the cause.

A sales person at Peachtree has acknowledged that some users simply overpower the program and cause it to hiccup with untraceable results. This gap has been growing over the past 2 years, almost doubling every year.

I am now finding other G/L accounts are being affected, and all have connections to inventory, ie. Accounts Payable and Accounts Receivable. My A/R is understated to the tune of $19000+ and my A/P is overstated by $4000 approx.

Peachtree is a great accouting package, don't get me wrong, but I think that it is now time to look at a different program to handle inventory related transactions.

tgeorge
01-24-2002, 01:55 PM
OUCH!
My CPA has always felt good about PCA at least for DOS, and feels switching to anything else (if it ain't broken, don't fix it), would limit us on the inventory side of things.
He chuckles each time I bring up the fact that things at G/L versus AP/AR, etc don't jive...then I find things...again, operator error. I have noticed, that when I post a prepayment of an item NOT in inventory, that A/R WILL understate.
As far as A/P, I get skewed a little each year, but it is only in the 100's, not thousands.
I feel trapped using DOS v11...walking a tight rope if you will. I have had good luck with this program, but don't see anything out there that is comparable price/benefit wise.

rita
02-11-2002, 01:21 AM
Try running recover data files in the utilities module & check the reports that are generated for each module - this might give you a clue as to where to look for your problems as well as clean up erroneous transactions. When I have an item that shows up over & over (ie. a particular inventory #), I assume that the file is corrupt and either delete it at year end & recreate it in the new year or assign a new number and stop using the old one until it can be deleted.