Month End Variance

Are you running IC234 at month end or later in the month? IC234 doesn't include items that have been removed from stock in the calculation. So even though there was stock on hand on 10/31, if that stock was removed on 11/1 and you run IC234 today with a validation date of 10/31, that item won't be included on the report.

We run IC234 with or right after the IC199 and there's still discrepancies. Most of ours occur by the users or buyers adding non-stock or specials to an inventory order and then using the balance sheet account on the line. That makes the AP and PO transactions also hit the GL instead of just IC.

Anything on GL90 that does not have system code IC is not included on your IC234.

We run it later in the month. We think it may be caused by invoice match exceptions. Essentially if A/P pays a different price, the adjustment is hitting our supply chain department.

Hello again Dennis!

We also deal with the Price Variance's every month and what you say is true. If there is any cost difference from what is on the PO or what cost the item was received in at vs. the Invoice paid cost approved via a cost message it will show up on the variance report for the cost center you have set up in IC04.1 under the General Ledger Category set up. In your hospital's set up if you still only use IC12 for inventory items only I believe it "might" only affect your inventory type items. Here at Childrens we create an IC12 for every Lawson item for our Dallas Location and our Plano Location (for now the only two anyway). So it all hits our variance even if the item is non-stock and our department takes the hit based on the set up and our cost center being under that GL category. We are brainstorming ways to tie those charges or credits back to the departments and I think I heard that you do not have to put a cost center or account unit in the variance field and possibly that solves the issue and the variances go back to the requesting dept., but I am not positive about that nor have i tested it.

Sara

When there's a difference between the invoice item cost and the receipt cost for an inventory item, on the match a cost adjustment (CA) is applied to the inventory account and the offset goes to the Item Cost Variance Suspense account set up in AP00.5. If there's insufficient stock on hand to cover the entire quantity to be adjusted the difference is applied to the Cost Variance account set in IC04 for that item, in our case it's the Other Inventory Adjustments account.

If your match rule groups are set for Detail Level Match, for any nonstock items whether they are built in IC12 or not you should not be seeing anything going to your department if it's not set that way on the PO line. On the match the full amount of the invoice should go to the AU on the PO line.