How to correct the wrong transaction in NF ?

If there is a mistake when input the Receipt ( from the Purchace Module ) - for example someone was taken a mistake when input the quantity of the inventory which are receipt at that time How to correct that mistake in Navision Financial ? Thanks for the coorporation Best Regards, Agatha Agatha

Hi, This is depends on what costing system you use (FIFO,LIFO,Average…). Also it is much more difficult if you have used this quantity already (Sale, Issue or transfer to another location). Really it is a lot of different situations with different solutions: 1. -Costing System - FIFO, LIFO, SPECIFIC, STANDARD -Order Posted as Receipt and Invoice -Quantity does not used 2. -Costing System - FIFO, LIFO, SPECIFIC, STANDARD -Order Posted as Receipt -Quantity does not used 3. -Costing System - FIFO, LIFO, SPECIFIC, STANDARD -Order Posted as Receipt and Invoice -Quantity used already 4. -Costing System - FIFO, LIFO, SPECIFIC, STANDARD -Order Posted as Receipt -Quantity used already 5. -Costing System - Average -Order Posted as Receipt and Invoice -Quantity does not used 6. -Costing System - Average -Order Posted as Receipt -Quantity does not used 7. -Costing System - Average -Order Posted as Receipt and Invoice -Quantity used already 8. -Costing System - Average -Order Posted as Receipt -Quantity used already I will describe this one by one later. And I will ask everybody to help me describe all situations. What situations are you most interested in? Valentin Gvozdev BMI Inc.

  1. -Costing System - FIFO, LIFO, SPECIFIC, STANDARD -Order Posted as Receipt and Invoice -Quantity does not used This is easiest situation. You should create credit memo for Items and apply each line to specific Item Ledger Entry. As common uses forget to Apply Credit Memo lines to Item Ledger Entry. In this case result will be wrong. Lets consider situation (FIFO-costing): We have on Inventory 100 peaces of Item A with Unit cost $5. We made mistake and post 50 peaces of Item B with cost $2 as Item A. If we forget to apply Credit Memo Line to the Item Ledger Entry that we going to correct system will post wrong cost and result will be: Purchase Invoice: Debit PA +100 Credit AP – 100 Inventory Adjustment: Debit IA +100 Credit IAdj –100 Credit Memo: Debit AP + 100 Credit PA - 100 Inventory Adjustment: Debit IAdj + 250 Credit IA – 250 As result of these transactions system will record loses of $150 Conclusion: Do not forget to Apply Credit Memo lines to wrong Item Ledger Entries. Valentin Gvozdev BMI Inc. Edited by - Valentin Gvozdev on 2001 Mar 06 19:57:56

Hi Valentin, First of all I want to say many thanks for the explaination about the question that I asked in the forum Thanks for the first choice of 8 alternative that the problem will be happened in the future In my company, maybe the alternative that usually happened in the transaction are the number 5 until number 8 But I think better I also know the explaination for solve the problem that from the alternative number 1 till number 4 Ok then … I will wait your explaination one by one for all alternative that will be happened Once again many thanks for your kindness Best Regards, Agatha Agatha

Hi Agatha, The Average costing system is most difficult in terms of correcting mistakes. 5. Let’s consider the same situation. We have on Inventory 100 peaces of Item A with Unit cost $5. We made mistake and post 50 peaces of Item B with cost $2 as Item A. After this system recalculate average cost as (1005+250) / 150 = 4. Navision recalculates average cost only when you post positive transaction. It means you can NOT correct this mistake using only credit memo. These transactions will be posted if you will post only credit memo: Purchase Invoice: Debit PA +100 Credit AP – 100 Inventory Adjustment: Debit IA +100 Credit IAdj –100 Credit Memo: Debit AP + 100 Credit PA - 100 Inventory Adjustment: Debit IAdj + 200 Credit IA – 200 You will record gains of $100 during this operation. And feature sale statistics for Item A will be screw up for whole quantity because sale for Item A will be recorded with cost $4 instead of $5. What should we do? First at all you can NOT fix any Sale statistics (Reports “Customer Sales Statistics”, “Cust./Item Stat. by Salespers.”, “Item Sales Statistics” and some others) for transactions that was posted after mistake and before you find this mistake. How should we correct feature operations? Lets consider situation: We sold 20 pieces of item A for $10 p/p before we found this mistake. (We should remember that sale statistics report would show wrong result for this transaction.) We should post purchase credit memo as described above for 50 peaces. After this transaction we will have 80 peaces of Item A with average cost $4. We need to correct average cost for this 80 peaces from $4 to $5. I would recommend posting Positive Adjustment for 1 piece with cost (80 + 1) * 5 – 80 * 4 = 85 And than Negative Adjustment for 1 piece. It is look quite difficult but I found this easiest. You should make Positive and Negative adjustments only if you screw up average cost significantly. You should remember: after you sell all items with wrong cost your financial result will be corrected but your “Sales Statistics by Item” will be wrong. Conclusion: Think twice before post purchase as Invoice if you use Average Cost. Ask your solution center to create function that will check unexpected Increase/Decrease in unit cost. We create function that warn if user try post purchase with cost variation more then 20% (50%, 100%…) Valentin Gvozdev BMI Inc.

  1. I can say you are lucky if you found mistake before you post receipt as Invoice. I would recommend enter additional line with negative Quantity ( - 50 as in previous example) and Direct unit cost = Average Cost for Item A ( $5 as in example) for both lines. If you will post this document as receipt and invoice net effect will be 0. You totally correct your mistake. Valentin Gvozdev BMI Inc.
  1. Almost equal 5. You can NOT correct statistics for used quantity. You can correct only average cost for remaining quantity on inventory. 8. Almost equal 6. You can totally correct mistake using the same transactions. Valentin Gvozdev BMI Inc.