Sorry, but i need to come back to the topic that was discussed many times. [B)] Attain 3.10 I have an item card that has Average costing method. I need to change it to Standard. my actions step-by-step: 1) I write off all the quantity on hand (Inventory Journal - Negative Adjustment) 2) Periodic Activities - Adjust Cost 3) Item Card - Item Ledger Entries (to make sure that total quantity and adjusted cost are zero) 4) Periodic Activities - Post Inventory Cost to G/L 5) Account Schedules (to make sure that the cost is posted correctly) 6) Item Card - try to change the Costing Method. No way - “You can not change Costing Method because there are one or more ledger entries for this item” I tried to debug it. Here is a function on Table 27 - Item that calls the error:
TestNoEntriesExist(CurrentFieldName : Text)
IF ItemLedgEntry.FIND('-') THEN
Here we are: in fact this function does not check existance of open entries. It rather checks existance of any entry… I hate to modify the function, because so many postings say that THERE IS a correct way of doing things. Please, tell me where is my fault? Thank a lot Andriy
Seems like something so many encounter … We had imported our inventory and had started posting. Several items had missed the review and were posted to (Physical count). Then the client said these items should have been standard costed, not average. We have tried to change the method of costing but the sytem won’t let us because there were ledger entries. We went to the physical inventory journal, make an adjustment and apply to the other entry such that there are no open entries and still, we are unable to adjust. It appears that it’s not looking at open entries but rather for ANY entries. How can we make the fix without changing code? or can we? _________________________________________________________________________________ Following is the Navision Software US response Please see document 10773 for the requirements for changes to the code required to complete a change in costing method. Thanks
Hi, Grace Thanks for your reply - you inspired me to find a workaround [:)] I plan to recommend my client this scenario: 1) we have an item A1 with erroneous costing method and item ledger entries already posted. 2) write it off (applying the entries manually) 3) run Adjust Cost and Post Cost to G/L batch jobs 4) rename the erroneous item to ERR-A1 5) mark the item as blocked 6) create a new item A1 with correct method and post “opening balances”. Enter comments to the item (something like “this item was created on 27.11.2002 by Andriy Kucherenko to replace item ERR-A1. Reason: wrong costing method”) 7) make sure that ERR-A1 is not on purchase/sales documents that have not been posted yet. Correct the documents if necessary Here we are I tested the scenario - it works. But i would highly appreciate any critisizm.
You can change the costing method by using a dataport, it doesn’t check the item ledger entries and as long as you have done the steps you listed, zero out inventory, then change the costing method you should be fine
Hi, Can I ask why they are changing the item card from Average to Standard costing? Also, when you have standard costing, doesn’t this have to apply to all inventory? We’ve been using Standard Costing and have found it to be extremely time consuming. We’ve only been able to apply capacity overhead and have never figured out how to apply material overhead. We’re always having to worry about variances that don’t really seem to mean anything.
Hi, One workaround - “Please test before use…” Create another new company in the database. Then change the “Table Property” for the Item Table for “DataperCompany” as “No”. Go to the newly created company and change the costing method to standard and define the standards. … Then go to the original company book and run the Periodic Activities “Adjust Cost” and “Post Inventory Cost to GL” batch job which should post the variance accounts. As I said earlier, I have not verified the results. Please test and let me know if this works Cheers,
The following is Navision’s response to why and how. Issue How to change the Inventory Costing Method from Average to FIFO once transactions are entered? Resolution The reason the program works the way it does is basically for accounting issues resulting in a change in Accounting Principles and Methods. When Navision looked into whether to allow a change in Accounting Method for Inventory Valuation, the technical reasons were resolved fairly quickly. However, the change would result in massive processing time because of the GAAP requirements. The accounting implications for such a change are far reaching. Implications of a Change Under GAAP (established by APB20), changes in accounting principle, such as a change in Inventory Valuation, must be handled in one of two ways. When changing from LIFO to any other method, the change must be retroactively applied to the whole fiscal year and if financial statements present more than one year, all years presented must be restated to reflect the change (on both the Balance Sheet and Income Statement). When changing from any other method of Inventory Valuation to another method, the change must be made for the whole year and adjustment to the prior year must be recorded to reflect what the cumulative effect on Income would have been. Now imagine what the IRS requires! It is for these reasons that Navision has chosen to protect the Customer making a change. Navision decided not to allow the user to violate accounting principles. When a change is appropriate: Having said all of this, from time to time, Companies will make mistakes or perhaps change methods in the same year that they started using them. In this case, as long as 100% of an Item has been used and all of the transaction have been posted to GL (including the Valuation postings), then none of the complicated issues above are applicable and you should be able to make the change of method without too much effort. How to make a change: To actually make the change, a user must make sure that all entries are closed (i.e. The ‘Open’ field in Item Ledger Entry Table must be unchecked) and all value has been posted to the General Ledger. To make sure all entries are closed, an entry will be made through the Item Journal as a Positive or Negative Adjustment to bring Inventory to zero remaining Quantity level and make sure that all negative Quantity entries have been properly matched against positive Quantity entries - (i.e. make sure that Quantity is 0 by Location, Variant, Serial Number, Lot Number, AND in Total). Once Inventory is brought to zero and all entries are closed (‘Open’ flag unchecked), go into the trigger code for the ‘Costing Method’ field of the Item table (Table 27) and comment out the following code: Navision: dbSELECTKEY(ItemLedgEntry.“Item No.”); dbSETRANGE(ItemLedgEntry.“Item No.”,“No.”); IF dbFINDREC(ItemLedgEntry,’-’) THEN ERROR(’%1 cannot be changed because’+ ‘there are ledger entries for this item.’,dbFIELDNAME(“Costing Method”)); Navision Financials: ItemLedgEntry.SETCURRENTKEY(“Item No.”); ItemLedgEntry.SETRANGE(“Item No.”,“No.”); IF ItemLedgEntry.FIND(’-’) THEN ERROR( ‘You cannot change %1 because there are one or more ledger entries for this item.’, FIELDNAME(“Costing Method”)); Navision Attain: ItemLedgEntry.SETCURRENTKEY(“Item No.”); ItemLedgEntry.SETRANGE(“Item No.”,“No.”); IF ItemLedgEntry.FIND(’-’) THEN ERROR( Text 007, CurrentFieldName); When you have finished changing the Iitems that need to be changed, reinstate the code. If the Items had open transactions previously, post either a positive or negative adjustment to reinstate the Item Ledger Entry(ies) and then run the Valuation routines. Of course, if you have a layered Costing Method, such as FIFO or LIFO, add more than one positive adjustment to establish the correct Layers and Costs.