After I close inventory at the end of the month. Should I run a re calculation ? As I have been doing the research, I have not found a definitive answer. What are the pros and cons of running a re calculation after closing inventory at month end ?
Thank you
Mina, the procedure should be the opposite, you might need to run a re-calculation before you close inventory at month end. The re-calculation process is the one that adjust your journals based on the inventory model you have (FIFO, Average, etc), and the inventory close wil do the same (if no re-calculation was done before) plus mark the transactions as “processed” so in this way, the next inventory close transactions marked as processed are not taken into consideration and the performance of the process itself is optimized.
We have a customer that needs his costs to be adjusted daily, so he run every night a re-calculation process, and an inventory close at month end to mark transactions as processed.
Thank you Hector
Hector,
what does it mean that the transaction is “processed”
Thank you
With processed I mean that a re-calculation or inventory close procedure already “look” at that transaction and made the adjustment if it was neccesary, if so, it was marked in order not to “look” to that transaction again.
Regards