Design reviewed on 23rd October 2017

The process of calculating individual transaction level is causing a fair bit of complexity and will be difficult to explain. Since we know that linksoft stock value is correct and we need to match LinkSOFT with JIWA general ledger, we can change the design as follows:

1. Using the LinkSOFT valuation, summarise valuation by Period and Account codes
2. XXXXXct JIWA GL balances by Period and account code
3. Using 1 and 2 above, compute the journal that will bring JIWA GL that will match with LinkSOFT valuation.

To achieve the above, we can build the following:

1. Create a valuation control table that holds 1 entry per month. (ID, BatchID, Period, RecalculateJournal, CreateJournal, TotalTransactions, TotalValue, Status)
2. Create a valuation detail table that holds 1 entry per period/account code (ValuationControlID, InventoryAccountCode, Valuation, GL Value, Difference)
   1. Option to View Valuation for each item

Business rules to enforce for creating journal:

1. 1 inventory asset account can only have 1 cost variance account.

Discussion with Fiji team on 10/11/17. We have agreed to build on the following rules:

1. LinkSOFT variance will be distributed to 3 asset accounts.
2. Posting codes will be amended so that there will be 1 to 1 relationship between asset and cost variance.
3. During the validation process, if there is an asset account having more than 1 cost variance, we flag this as an invalid entry.
4. A user can initiate a valuation by month as long as the period is open in JIWA.
5. The stock value in LINKSOFT as at a period end date will be used to adjust the general ledger asset account as at the same period end date by passing a journal that will affect asset and variance account.
   
6. The valuation date will be validated POS valuation process (Pending/completed). When all valuation for a period is completed, we allow JIWA valuation.
7. Validation will check for any unposted journals/sales orders, adjustments, etc in JIWA for the period.
8. Validation will check for any unposted adjustments, purchase received in LINKSOFT for the period.
9. A user can choose to run the valuation for a period multiple times provided prior valuations are closed.

The following has been developed:

1. We have added a new menu item in POS-WEB for "GL Valuation Process". Refer to figure 1 below.
2. Added a background process "GL Valuation Process" that needs to be enabled.
3. To start valuation process, follow these steps:
   1. Create a new entry in the valuation form (figure 1). 
   2. The option to recalculate does not need to be ticked when creating a new entry. This option is used to recompute the values of an existing entry.
   3. The option to "Create Journal" will create a journal in the General Ledger based on the calculated valuation and complete the batch. You will need to review and post the journal created in the General Ledger.
   4. We recommend you do not tick the box "Create Journal" until you have reviewed the valuation.
   5. The background process will compute the difference between LinkSOFT and GL values based on the products posting code accounts for the selected period end date.
   6. You can review the details of the valuation using the link at the end of the control table entry.
   7. If the valuation is correct, you can edit the control entry and tick the box to "Create Journal". The background process will create the journal entries in General Ledger.

Figure 1: GL Valuation Process

regards
Alvis/Sanjay

After performing UAT round1, we have made the following enhancements to the valuation process:

1. Added a new form named Valuation that shows the valuation status by PERIOD. This form shows the progress status and is refreshed every 5 seconds. Refer to figure 1.
2. Added a new detail view for valuation that shows the items by Location and a status showing how many items are pending
3. A detail view of location shows the list of items and cost details. Refer to figure 2
4. Changed the process POS012 to create valuation entries for New Periods and Backdated transactions. This process runs every hour.
5. Added a new rule to set the Valuation Start date. This rule creates valuation entries from a nominated start date. This prevents valuations for old periods where valuation is not important. Refer to figure 3.
6. Valuation process now takes a maximum of 1000 rows per run. This allows the process to complete and free up resources. The status can be monitored on the "processes" form
7. Improved performance on the "Get Available Stock" function

Figure 1 - Valuation by Period

Figure 2 - Valuation view by Location and Item

Figure 3 - Processes change to POS012

Hi Team,

We will proceed to close this case we have tested the new framework for Valuation.

All Valuation processes have been tested as per comment 5.

The OGTL scenarios has failed and now will be tested as part of case 8967.

Regards
Rashna 

Documentation completed on the case.

Documentation updated under POSWEB ---> Valuation.

Documentation updated under POSWEB ---> GL Valuation Process