Apprise stores inventory costs in six decimals, but stores transactions and balances in two decimals. As a result, small rounding amounts may accumulate over time and cause discrepancies when reconciling inventory with the general ledger.
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Example The following is an example of inventory rounding that occurs when three units of a product are bought at a total cost of 10, and then sold individually.
After the second sale, the inventory and general ledger no longer match, and there is a difference of -.01. |
Apprise tracks the inventory rounding amounts, which you can view in Inventory Rounding Inquiry and on inventory valuation reports output in Inventory Valuation Report.
Inventory rounding amounts that are greater than .005 are posted automatically in Inventory Adjustment Post if the Post Inventory Rounding Differences check box is selected in Warehouse Management Control Maintenance. If this check box is cleared and inventory rounding amounts greater than .005 exist, you must perform one of the following:
Create manual journal entries to account for the rounding amounts.
Select the Post Inventory Rounding Differences check box, and post in Inventory Adjustment Post. Rounding amounts calculated before the check box was selected are posted.
When the Post Inventory Rounding Differences check box is selected and rounding amounts are posted, the following accounts are used for the posting:
Rounding Account - Set up in Warehouse Management Control Maintenance.
Inventory Account - Based on the account resolution.
Note If you change the account resolution for a product/location, the inventory account for the last inventory rounding record is used for the posting.
When a rounding amount is posted, a new rounding amount may be calculated to account for any remaining rounding difference.