Adjust Cost Item Entries

We are currently using Navision 3.60A and directed to run the “Adjust Cost Item Entries” at least once every month end. However, we decide to run it daily so that we can review the Gross Margin performance daily. It’s impossible for us to close the month end sales exactly on last date of the month (for example August 2004). Normally, we close the August’s transactions 4 days after the month end, which is on September 4th 2004. Since we never back dated the "Adjust Cost Item Entries " process, then cost adjustment that run on September 2004 and supposed to be recorded as August’s cost adjustment, is recorded as September’s cost adjustment. Eventually, the Gross Margin for both months are not represent the exact margin. My questions are: 1. Is there any impact if we run the “Adjust Cost Item Entries” back dated to the actual posting date? 2. Is there any facility to setup the “Adjust Cost Item Entries” process run automatically? Thank you for any replies. Panca

Panca, I only have an answer to question #2: I copied report 795 to a new report, set the Property ‘UseReqForm’ to ‘No’ and added a line of code to the OnPreReport: PostingDate := WORKDATE. Navision Scheduler runs the report daily. Our version is 3.10.

For #1, If you change the Posting Date of the Adjust Cost, it will post any adjustments before that date to the Posting Date you entered. Any adjustments after that date, will be posted to their Original Posting Date. You can’t choose the transactions that are actually adjusted. This assumes that you have automatic cost posting set to yes. If you do not, then you can control alot more (Filter by Posting Date, etc.) using the Post Costs to G/L Periodic.

quote:


Originally posted by chrisk
For #1, If you change the Posting Date of the Adjust Cost, it will post any adjustments before that date to the Posting Date you entered. Any adjustments after that date, will be posted to their Original Posting Date. You can’t choose the transactions that are actually adjusted. This assumes that you have automatic cost posting set to yes. If you do not, then you can control alot more (Filter by Posting Date, etc.) using the Post Costs to G/L Periodic.


But doing this will cause the inventory value to be posted into the prior period… =(

There is a White Paper from Microsoft about this issue. And in fact they have a solution. It will be implemented in Navision 4.0, and the Paper describes code changes for Navision 3.60 and 3.70[a]. I have tried the solution, and it works fine.

quote:


Originally posted by achowtc But doing this will cause the inventory value to be posted into the prior period… =(


I’m Lost? If you pick 8/31/04 as the Posting Date, any adjustments to transactions before 8/31/04 will be posted to 8/31/04 and any adjustments to transactions after 8/31/04 will be Posted to their Posting Date. Assuming that you are closing 8/31/04 (and it is not a prior period), how are you posting to a prior period?

If you post a sales invoice in 5/31/04 for sales order for an item that has not been invoiced yet. If you later on post the vendor invoice with a different cost with a posting date of 6/1/04. You run adjust cost for 5/31/04, the COGS will post into 5/31/04. While your additional purchase cost is posted to 6/1

Also, imagine the amount of fun you can have adding landed cost (item charges) into the mix. If you back date the ACIE process, the difference will be even greater. I always encourage the end users to run this everyday as much as they can to avoid inventory reconciliation headaches… While I understand that this is NOT a bug, but I certain hope that Navision 4.0 will make this more friendly (and forgiving) in terms of period end processing.