Hi Guys, My customers has just closed their Fiscal Year. The unit cost of most of the items they had given initially were incorrect and hence their Inventory Valuation has got haywire. Now they want to start afresh with new unit cost. Also more importantly they do not want the Adjust Cost - Item entries batch to consider entries for the last year!!!. Is there a way to do all this. Would removing entires from Item Application Entry tables for the last year help ??? And yes … we have only a month’s transaction with us … we went Live in Nov 2004 only. So most of the unit cost have not changed . The customer has simple distribution activities … only purchase and selling … no manufacturing etc. Thanx in advance K M Bhartiya
The easiest is to probably count your inventory down to zero and then re-enter it via an item journal at the correct costs. P.S. Don’t delete any Item Application Entries or you are just opening up a different can of worms.
Hi Chris, Thanx for the reply. But tell me even if I make the inventory 0 the next time I run Adjust cost will it not consider the old entries ever again. As for deletion another option that i saw yesterday was turning off the Cost Application flag as the adjust cost batch only works on item application entries with Cost Application = true. Another thing … How do I ensure that now onwards my Average Cost does not consider the last years entries, because as i unsderstand the unit cost field is updated from the Average Cost field after every transaction and then by the Adjust Cost Batch. Thanx KMB
You are correct in saying that the Adjust cost will consider the entries, but they should all be adjusted against themselves. Assuming that all you entries are invoiced and the inventory is zero, the value in your inventory account (via the adjust) and the value on your Inventory Valuation Report will be zero. Once you bring in the correct inventory, the average cost will be based on those costs (Average cost considers what is still in inventory). There are other options such as playing with the flags in the Item Ledgers, but these are extremely dangerous and should only (if ever) be used by someone with knowledge of how Inventory works in the system.