Implementing Manufacturing and Materials Management: From Empty Plant to Costed Work Order · Module 17 · Cost Processing and Close
Reconciling to the general ledger
Lesson 180 of 188 · 14 min
Run the inventory valuation report by organization and subinventory, run the GL balance for the inventory accounts, and compare them. Show them agreeing. Then introduce a deliberate difference — a transaction not yet accounted — and show the reconciliation break. Diagnose it along the processing chain, resolve, and re-reconcile. Show a WIP reconciliation for open work orders, and build the reconciliation working paper. This is the deliverable that proves the implementation works. Not a completed work order — a reconciled balance sheet. That reframes the whole course. The common causes of a break: transactions transferred but not distributed; distributed but not accounted; period timing differences; and manual journals posted directly to inventory accounts by somebody in Finance. That last one is worth naming. If anyone can post a manual journal to the inventory control account, reconciliation becomes impossible. Recommend restricting those accounts — and say it is a Financials-side control,…
The full lesson is part of the course
The video, the complete written lesson and the module quiz are included in Implementing Manufacturing and Materials Management: From Empty Plant to Costed Work Order, with a certificate on completion and a fourteen-day refund window.
In this module: Module 17 · Cost Processing and Close
- 1From transaction to journal
- 2Transferring transactions to costing
- 3Creating cost accounting distributions
- 4Creating accounting
- 5Reading the accounting
- 6Work order variance analysisFree preview
- 7Cost accounting period close
- 8Reconciling to the general ledger
- 9What breaks
- 10Lab: close the period and prove the number