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Adjust Cost - Item Entries batch job vs Charge Item

  • 1.  Adjust Cost - Item Entries batch job vs Charge Item

    Posted Jan 24, 2019 03:44 PM
    Edited by Katarzyna Rola Jan 25, 2019 12:12 AM
    Dear Team!

    I was wondering whether anyone has a knowlege of a reason why does it work that way:

    Lets assume that I've automatic adjust cost enabled. Allowed Posting Date is between 01.01.2019 and 28.02.2019. Both, January and February Inventory periods are opened.

    1) I purchase an item - receipt and invoice (Posting Date = January 15th)
    2) I sell an item (Posting Date = January 26th, cost is applied from an inbound entry)

    Everything is fine till know.

    3) I receive a new Purchase Invoice (eg. Transport) or Credit Memo for an item I've received in point 1, I post it by Charge Item (Posting Date = February 15th)

    And what happens in Value Entries and G/L at point 3:
    February 15th: Direct Cost Applied / Payables Account (this posting is fine)
    February 15th: Warehouse Account / Direct Cost Applied (this posting is fine)
    January 15th: COGS / Warehouse  (it is created by Adjust Cost - Item Entries batch job and is not fine, adjustment is previous month)

    In another words, Invoice posted in February causes(by Adjust Cost - Item Entries batch job) creating entries in a date before the invoice was in posted. I know that batch jobs try to adjust entries with the first possible date, closest to the outbound transaction date.
    I have COGS balance even before I've sold an Item...

    I know that I can close January in Inventory periods... But it is not the case. Does anyone see any reason for such VE creation...?

    Tested in NAV2018 W1 CU11.

    Katarzyna Rola
    IT.integro Sp. z o. o.

  • 2.  RE: Adjust Cost - Item Entries batch job vs Charge Item

    Posted Jan 25, 2019 01:22 PM
    By using the Charge (Item), you are effectively telling the system to adjust the cost of the inbound entry.  Instead of just the purchase cost, the total is now the purchase cost plus the additional costs.  If you look at the Value Entry for the Charge (Item) you will see a posting date of February, but a valuation date back into January (the date of the original inbound transaction).  The system will then use the valuation date to post any adjustments resulting from the Adjust Cost routine.  It will also update any inventory and COGS values based on the new value.  You can also prevent this by setting your Allowed-from Posting Date to Feb. 1st as soon as you can to prevent adjustments going back into prior month.

    David Wiser
    Project Manager/Solution Architect
    Beck Consulting
    Kent WA

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