Tracking Your Obsolete Inventory in Dynamics GP
Posted by Donna Krizik on March 18, 2015
Just three months ago, you counted your entire inventory and tallied up the numbers for your year-end closing.
Inventory is a huge part of most businesses and their sales, so it’s important, especially to accountants, to know what inventory qualifies as a write off and what inventory needs to be cleared out. Typically any inventory that has not been sold since December 31st of last year would be considered obsolete. So how do we track that “obsolete” inventory in Dynamics GP?
The most efficient way to track this type of inventory is to run an exception report to find out if any sales have been made after December 31st. You can do this in Dynamics GP with several different types of tools like:
• SmartList Builder or SmartList Designer
• SSRS Reporting
• SQL views in Excel
Need a Quick Solution? Use SmartList.
Create a new report from an existing SmartList called “Item Quantities”. Here is a snap shot of what that report should look like. You should include four columns with – Last ORD Date, Last ORD QTY, Last ORD Vendor, and Last Originating Cost. Doing this will pull the dates for the inventory items, you can them sort them from oldest to newest date and determine what inventory is obsolete.
If you find an item that is missing a date, then there is a possibility this item was uploaded with the ERP conversion, and the item is very old. You now can decide if you want to investigate further or build a more complex report. If you have inventory that needs to be written off, you now have the last originating cost in your report to determine the write off cost.
If you need assistance, please contact Crestwood at Support@Crestwood.com