ACL ESSENTIALS · 2018-12-08 · ACL ESSENTIALS | STOCK & INVENTORY MANAGEMENT | IN_ANALYTIC_04_INCS104 Risk Incorrect or fictitious inventory related transactional processing. Procedure

STOCK & INVENTORY MANAGEMENT

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Page Analytic Name

Inventory listingIN Analytic 01

Negative inventory quantitiesIN Analytic 02

Inventory with a zero cost priceIN Analytic 03

Inventory with a zero sales priceIN Analytic 04

Inventory received and issued by the same userIN Analytic 05

Net realizable valueIN Analytic 06

Analysis of inventory sales by quantityIN Analytic 07

Analysis of inventory sales by amountIN Analytic 08

General journal adjustments to inventory accountsIN Analytic 09

Analysis inventory ordering and usageIN Analytic 10

ACL ESSENTIALS – SEGREGATION OF DUTIESVersion 6.1.0 –2018/02

Extracts a current inventory listing

ACCOUNTS PAYABLE

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ACL ESSENTIALS – STOCK & INVENTORY MANAGEMENT

ACL ESSENTIALS | STOCK & INVENTORY MANAGEMENT | IN_ANALYTIC_01_INCS101

ContextThe inventory listing itemises all inventory on hand, including description, quantity and value.

RiskIncomplete/incorrect inventory on hand balance.

ProcedureExtracts a current inventory listing.

Analytic LogicExtracts a complete listing of all inventory items as at the download date of theunderlying tables.

Output Results Field Names

Company Code Company Name Plant Code Material Number Material Description

Report Currency

Output Visualization Examples

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Material Quantity Material Converted Unit of MeasureReport Cost Price

Total Value of Material Material Standard Price Material Valuation Class Material Fiscal Year

Inventory stock count

Current inventory by value

Plant Name

Identifies all inventory with negative quantities

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ContextInventory should not have a negative quantity, i.e. more sold than available. All identified instances should be investigated.

RiskIncorrect or fictitious inventory related transactional processing.

ProcedureIdentifies all inventory with negative quantities.

Analytic LogicExtracts all inventory items where the quantities are currently negative.

Output Results Fields


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Company Code Company Name Plant Code Material Number Material Date Created

Report Currency Material Quantity Material Unit of Measure

Report Cost Price

Total Value of Material

Material Standard Price Material Valuation Class Material Fiscal Year

Total negative quantities by plant

Negative inventory quantities

Total quantity exceptions by material and unit of measure

Heat map of total quantity by plant and material

Identifies inventory with a zero cost price

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ProcedureIdentifies inventory with a zero cost price.

Analytic LogicExtracts all inventory items which have a zero cost price in the system.



ContextInventory with a zero cost price could be as a result of incorrect capturing or obsolete inventory. Obsolete inventory should be removed or errors corrected.

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Report Cost Price



Heat map of zero cost price by material and plant name

Inventory with a zero cost price

Total quantity of exceptions by material description and number

Plant Name

Identifies inventory with a zero sales price

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ProcedureIdentifies inventory with a zero sales price.

Analytic LogicExtracts all inventory items which have a zero sales price in the system.

ContextInventory sales value is not expected to be zero. If this occurs it could be because of incorrect processing or a fictitious transaction that has been processed. All identified instances should be investigated.

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Report Cost Price



Inventory with a zero sales price, by count

Inventory by total valuated stock

Plant Name

Identifies where inventory is received and issued by the same user

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RiskLack of segregation of duties.

ProcedureIdentifies where inventory is received and issued by the same user.

Analytic LogicExtracts stock movement inwards (received) and outwards (sales or issued) andidentifies where both movements are done by the same user ID.

ContextThere should be segregation of duties in place between the person receiving and the person issuing inventory as this will ensure integrity of the inventory transaction.

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Company Code Company Name Plant Code Material Number

Document User Name Document Type Document Number

Document User ID

Document Created Date Report Cost Price

Report Currency Material Quantity Material Unit of Measure Total Value of Stock

Material Valuation Class Material Fiscal Year Document Date Document Material Line ID

Material Standard Price

Inventory received and issued by the same user

Total valuated inventory exceptions by material number

Material Description

Identifies where the net realizable value or selling price of inventory is less than the cost price

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ProcedureIdentifies where the net realizable value or selling price of inventory is less thanthe cost price. Net realizable value is defined as the estimated selling price in theordinary course of business minus any cost to complete and to sell the goods.The current sales price is a good value to use for this analytic. Accountingstandards require stock to be valued at the lower end of net realizable value andcost, and this analytic assists in monitoring this valuation.

Analytic LogicExtracts sales transactions of stock items to determine where the sales price islower than the cost price per individual stock item or unit thereof.

ContextThe inventory sales value is not expected to be less than the cost price. If this occurs it could be because of incorrect processing or fictitious transactions that have been processed. All identified instances should be investigated.

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Report Cost Price Report Currency Material Quantity

Document Sales Price

Material Unit of Measure

Material Converted Unit of Measure Total Value of Stock Material Standard Price Document Sales Net Price

Sales Document Sales Document Item Date Created Sales Quantity Sales Creator

Sales Creator Name Material Valuation Class Material Fiscal Year Document Currency

Total cost price of exceptions by material and plant

Heat map of total sales price exceptions by creator and material class


Report of inventory sales by quantity to be able to assess trends of inventory turnover

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RiskInability to track and monitor inventory movement.

ProcedureIdentifies inventory sales by quantity to assess trends of inventory turnover.

Analytic LogicExtracts the number of transactions and related quantities sold per material permonth.



ContextThis information is helpful for planning purposes and provides useful management information that identifies unexpected movement in inventory. Unexpected trends can also be investigated.

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Company Code Company Name Total Sales Quantity Total Number of Transactions

Sales Order Quantity –Month 1 Sales Order Quantity –Month 2 Sales Order Quantity –Month 3

Statistics of inventory sales by quantity

Total sales quantity per material Total number of transactions by material

Inventory sales by month Analysis of inventory sales


Report of inventory sales by amount to be able to assess trends of stock turnover

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RiskInability to track and monitor inventory movement.

Procedureidentifies inventory sales by amount to assess trends of inventory turnover.

Analytic LogicExtracts the sales value in local currency per material, month by month, for theperiod selected in the initial date parameter.

ContextUseful management information to identify unexpected turnover in inventory. This information is also helpful for planning purposes. Unexpected trends can be followed up.

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Company Code Company Name Plant Code Total Sales Net Value Document Currency

Total Sales Quantity Document Sales Net Value –Month 1 Document Sales Net Value –Month 2

Document Sales Net Value –Month 3 Document Sales Net Value –Month 4

Inventory sales by total net price, quantity and material

Inventory cost by month

Plant Name

Listing of inventory adjustments posted by means of a journal to an inventory account or inventory adjustment account

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RiskIncorrect or fictitious inventory related transactional processing, resulting in anincrease or decrease in the inventory value.

ProcedureIdentifies inventory adjustments posted by means of a general journal to aninventory account or inventory adjustment account.Note: Not all manual journals to inventory accounts are exceptions or errors. Insome manufacturing businesses the valuation of inventory is complex and costaccountants will post manual journals to adjust the final values of inventory.However, manual journals are typically a last resort and the value of theinventory is adjusted by adjusting the cost price per unit.

Analytic LogicExtracts general journal adjustments made to inventory.

ContextThe use of journals should be minimised and any identified journals should be investigated. This could be due to processing errors having to be corrected or fictitious transactions processed.

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Document User Name Document Type Document Number

Document User ID

Document Created Date

Document Posting Date GL Account Number Report Amount Report Currency Debit

Credit Journal Text

Total amount rep currency by material

and plant

Heat map of total amount rep currency by GL account and material

Plant Name


Report of inventory quantities ordered and used

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RiskInability to track and monitor inventory movements.

ProcedureIdentifies inventory quantities ordered and used. This can be used by audit fortheir analytic reviews or for the business to understand inventory movements.

Analytic LogicExtracts inventory ordered and issued per inventory item.

ContextThis information is used to track inventory movement, identify unexpected movement and can also be used as input for planning purposes. Unexpected movement should be investigated.

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Quantity Quantity Unit Stock Movement Date

Warehouse Code

Document Type Month Year Stock Movement

Inventory order analysis by month

Inventory sales by month

Plant Name


Documents

ACL ESSENTIALS · 2018-12-08 · ACL ESSENTIALS | STOCK & INVENTORY MANAGEMENT | IN_ANALYTIC_04_INCS104 Risk Incorrect or fictitious inventory related transactional processing. Procedure