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NAV inventory revaluation

  • 1.  NAV inventory revaluation

    Posted 20 days ago
    ​HI,
    I need some guidance on revaluing specific items in inventory.  Can this be done through a positive/negative adjustment?  Negative adjustment "old value", positive adjustment "new value".  If so, what implications would this have on the final value.  I've used the revaluation journal in the past but, this requires opening closed periods.


    Thank you.

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    Cheryl Gordon
    Sr. Accuntant
    Habitat for Humanity
    Atlanta GA
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  • 2.  RE: NAV inventory revaluation

    SILVER CONTRIBUTOR
    Posted 19 days ago
    I've used the revaluation journal more lately than what i did in the past. Before i would make positive and negative adjustments in order to have a cost be correct. After learning more, i don't like doing this anymore. Our system is based on average costing, so it's helpful to revalue once i know everything has been sorted with the items in question.

    Here's what I do now when there's inventory valuation discrepancy-

    • First, I make sure my quantities/lots are straightened out for the item in question
    • Next, I look into the costing/valuation process and identify any variances that need to be adjusted.
    • After that, i find the amount(s) and GL account(s)/Dimensions that can be assigned to the adjustment
    • I revalue on an item basis
      • What this means is i need to know the entire value of the item quantity on hand at the time i am dating the adjustment. The difference will go to the Posting group/Dimension assigned
    Hope that helps and makes some sense. Feel free to reach out to me with any questions
    Andrew

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    Andrew Rutledge
    Assistant Controller
    Marine Ingredients
    Mount Bethel PA
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  • 3.  RE: NAV inventory revaluation

    Posted 19 days ago
    Thanks Andrew for your response.  We are revaluing the remaining inventory downward (30%) of current value.  The unit cost will need to be adjusted.  Can this be accomplished by a negative adjustment by quantity and $$ value to remove old cost and a positive adjustment by qty and $$ to input new cost?​

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    Cheryl Gordon
    Sr. Accountant
    Habitat for Humanity
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  • 4.  RE: NAV inventory revaluation

    SILVER CONTRIBUTOR
    Posted 19 days ago
    Hey Cheryl,

    You can, but that's exactly what the revaluation journal is designed to do for you. Think of it that you are creating one transaction through the revaluation journal and two separate positive and negative transactions in the item journal if you carry out your proposed plan. It's cleaner and provides better traceability to use the revaluation journal.

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    Andrew Rutledge
    Assistant Controller
    Marine Ingredients
    Mount Bethel PA
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  • 5.  RE: NAV inventory revaluation

    TOP CONTRIBUTOR
    Posted 19 days ago
    Have either of you tried using the Revaluation Journal?

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    Kim Dallefeld
    Kim@Dallefeld.com
    Dallefeld Consulting, LLC
    Member of Dynamics Consulting Group
    Ft. Worth, TX
    2019 NAVUG Board of Advisors
    Past NAVUG Board Chairman
    NAVUG Programming Committee
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