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Kathy Barthelt
/ Categories: Infor LN & Baan Tips

Baan/LN Tip of the Week: Financial Year End – Have you done all you need to do?

I'm reposting this checklist for things to consider in order to finish out the current year, and plan for next year…

  • Are your accounting records up to date so you can make a projection of how the current year will turn out?
  • Are all account reconciliations up to date to facilitate the closing of the books after year end?
  • Are there accounts receivable that should be reserved for or written off prior to the end of the year?
  • If your business carries inventory, do you need to plan a physical count as of the end of the year?
  • Has depreciation on your fixed assets been recorded during the year? Have you considered depreciation on current year additions?
  • Have all new asset purchases and bank loans been recorded on your books?
  • Are there any liabilities, for example, pending legal actions or warranty issues, which will need to be recorded prior to year end? 
  • Do you have a plan in place to properly “cut-off” revenue at year-end to properly match revenue and expense?
  • Will there be bonuses, profit sharing contributions or discretionary retirement plan contributions paid prior to the end of the year? How will these payments affect cash flow?
  • Will you be in compliance with your bank covenants at year end?
  • Do you need to make arrangements to receive statements as of the end of the year for cash value of life insurance, loan balances, etc.?

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Kathy Barthelt

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Tips:  LX | BPCS | M3

Understanding: What Was Issued to the Shop Order

The shop order inquiry program provides several function keys. By using the function key for the material, the display will present what components have been issued under the issued quantity column. You are also presented with the required quantity. While viewing the quantities you may see that more was issued than what was required. Possibly there was scrap and more material was required to be issued. Perhaps there was an over issue and the balance of the material is slated to be returned to stock.

A red flag should go up if the Shop Order quantity finished is equal to the required quantity for the end item and all the components have not been issued. You may want to investigate why.

Understanding: The quantities required, finished and remaining at the operation and in total for the Shop Order

The shop order may require 1,000 pieces but only 950 are reported as finished in total for the shop order. The quantity required is what is planned on the SO and it may be a higher number than what is finished, factoring in that there can be scrap. If a 1,000 pieces are required to be produced, and there is always is scrap of 10 pieces, then plan for scheduling a quantity of 1,010.

The quantity finished for the end item is what is reported in the inventory application with a production order receipt transaction. At the operation level, if the quantity is reported at the operation, there will be a value in the PCS Complete field on the operation detail screen showing the pieces completed through that operation.

If you want to get a handle on the difference between the required quantity and the finished quantity, you may want to look into reporting quantities at the operation level as well as examining how scrap is controlled and reported.

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Tips: LN | Baan

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