Inventory Count

Owned by Anonymous
Last updated: Oct 02, 2014 by Anonymous

 

  1. You should schedule already for the inventory count. This is to be able to utilize the full functionality of NetSuite.
  2. While we are doing the configuration sessions, definitely there are some transactions that happened already.
    1. Go to Setup > Accounting > Accounting Preferences > Order Management > Fulfillment > Fulfill Based on Commitment and set the value to Ignore Commitment
    2. Gather all transactions from September 1 to day before the Inventory Count.
    3. Enter in NetSuite all  Purchase Order, Item Receipt, and Bills. This is to build up the inventory in NetSuite. You may continue also with the Write Checks or payment.
    4. Enter in NetSuite all Sales Order, Item Fulfillment, and Invoice. You will notice that NetSuite will allow you to enter fulfillments even if you have zero quantity, this is because of Ignore Commitment setup. This would result to negative inventory in NetSuite
    5. Once you have all the items counted already, put the result in an excel file and name it Physical Count.
    6. Go to Reports > Inventory / Items > Current Inventory Status and generate the report. The date of the report should be day before the physical count. Export the report to Excel file.
    7. Compare the Physical Count file against the report from NetSuite. The main goal is to have same On Hand qty in the system as of Physical Count date. Please see below sample.

 

 

 

  1. Once you have the qty to be adjusted, go to Transactions > Inventory > Adjust Inventory and select the Opening Balance account as the Adjustment Account. Date of the Adjustment should be 8/31/2014.
  2. The next step is to reverse the value posted into the General Ledger by your Inventory Adjustment transactions. You need to do this because the value of the Inventory will have already been incorporated in the GL that we have uploaded.
  3. Go to Transactions > Financial > Make Journal Entries and reverse the Opening Balance Account against the Inventory Account. This is the same with what we have done with the AR.

 

DR Opening Balances Account                                                    $<total inventory value>

CR  Inventory Asset Account                                       $<total inventory value>

 

  1. Once done with these steps, check all the reports to make sure that everything tallies.