Hello together, I have a quite tricky one. What would be the impact of changing the costing method from Average to FIFO for an item which already has item ledger entries, orders and maybe some other kind of stuff ? Item costs have also already been posted to G/L.
You could write a routine which: 1. Reverses all Open Item Ledger Entries. 2. Runs the Adjust Cost routine 3. Runs the Post Cost To G/L routine. 4. Checks that Inventory Value is 0. 5. Changes the Costing Method. 6. Reposts the entries that were closed by 1. You would also need to check that all Item Ledger Entries have been completely invoiced. This is partly because I am unsure of the consequences would be and partly in case you need to do a Revaluation to correct any costs which may have gone out. I have done this before but unfortunately have left the company where this was done otherwise I would have been more than happy to send you the code I used. [B)] I am unaware of any problems caused by this. We ran it twice for 2 different clients both were on 3.70 databases. Hope this helps you out a bit [:)]
What happens when I do the following: 1. Runs the Adjust Cost routine 2. Runs the Post Cost To G/L routine. 3. Changes the Costing Method. 4. Runs the Adjust Cost routine 5. Runs the Post Cost To G/L routine. just without clearing the item ledger entries ? Shouldn’t the system post the “difference” of the different costing methods ?
I guess it would work. My previous company just wanted to make absolutely sure that the Item Application Entries were correct but because Average uses FIFO for application it should be same. Better safe than sorry when it comes to Inventory [:D] But I imagine it would be fine.
If a client ever asked to do this, I would pretty much refuse. The average costing (depending on version) has some pretty specific logic in the adjustment routines. Having said that, from memory, the things I would watch out for are: 1) If any open entry has been applied partially then DO NOT do this. The application of the first entry will be at average and the second would be at FIFO. The costing application would re-visit the first application and either change it or create a rounding entry. Either way, your costing will be screwed from this point forward. 2) I’m pretty sure that you would need everything to be fully invoiced. I think (1) is enough of a reason not to skip the zeroing out of inventory.
Hello, My 2 cents, I agree. Prefer not to change it. If you need to. Make sure the user knows what is going to happen with: 1. History. 2. GL Accounts. 3. Reports being generated. Clear out all Inventory based on Posting dates, qty, location etc. Then do the steps they have stated. The re-enter them with the posting dates, qty, location etc with newest cost/prices. It’s a painful tasks but it needs to be done. Hopefully everyone will learn a lesson. Good luck.