Question
After a few weeks on the job, I noticed that one of the biggest problem was that the accounting financial system and the production department
After a few weeks on the job, I noticed that one of the biggest problem was that the accounting financial system and the production department used two separate information systems. The main reason for this was because it was a small company producing mainly 2-3 products, but these had hundred of part numbers so with time it was getting more and complicated to handle everything. Upon my review, I noticed that once the accounts payable department was receiving invoices, raw materials inventory was debited (this is an increase asset in the balance sheet) and accounts payable were credited (increase in A/P toward vendors). This process was correct, however, I noticed that the total inventory value in dollars on the production software and on the financial software was different.
1. Why do you think this value was different?
2. How would you try to solve this problem?
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