JD Edwards Cardex Analysis – Weighted Average Cost Calculation Error
JD Edwards Cardex Weighted Average Cost Calculation Error
Edward Gutkowski - Chief Architect RapidReconciler
While analyzing the JD Edwards cardex for weighted average cost items with one of our customers, I noticed something strange about the costs. See if you can see it in the transaction data below:
This is the JD Edwards cardex data exported to Excel and represents the entire history for the item. You can see transactions ranging from mid-2020 to mid-2021. The stock status for this item is 700 EA and the value calculates to 390.74. Have you found the problem yet? If you noticed the unit cost on receipt 4058804 OV had increased but the subsequent IT transactions did not, you are correct!
In a weighted average cost scenario, a receipt at a different cost than the current average should update the unit cost accordingly. The transfers were done at the old cost! If you take the stock status numbers and calculate the unit cost it is 0.5582, which was confirmed by checking the cost revisions.
In addition, if you summarize the extended cost column it totals 426.58, not 390.74 which means there is a dollar variance of 35.84 in the general ledger.
So why wasn’t the average cost updated? That is still under investigation with the following theories:
- A scenario in JD Edwards where weighted average items under lot control have their cost level set to 2 instead of 3.
- Receipts at this facility are scanned in with a bar code gun. I ran across a situation several years ago where the script the gun used to process receipts neglected to update the cost properly. This customer happens to use the same provider and hasn’t updated the software for some time.
It will be interesting to see where this investigation leads. If you see something similar in your data drop me a note. Once we discover the root cause I can pass it along.
Until next time, happy reconciling! If we can help with any of your JD Edwards consulting needs, please let us know.