Hello everyone, I would like to ask for your help on how to fix the wrong average value on Navision.
This is a fairly common one in Navision, and usually comes down to a few root causes worth checking before jumping to a fix.
First thing to verify: Go to Inventory Setup and check your Average Cost Calculation Type. If it’s set to “Item” instead of “Item & Location & Variant”, the system won’t calculate separate average costs per location at all, that alone could explain what you’re seeing.
If that’s correct, the usual suspects are:
- Backdated entries, a purchase receipt or adjustment posted with a past date retroactively distorts the average cost calculation for that location going forward
- Transfers between locations without running Adjust Cost afterward, the receiving location ends up carrying a stale cost
- Invoice/receipt cost mismatch, items consumed before the vendor invoice was posted, leaving an unresolved variance
To fix it:
- Run Adjust Cost – Item Entries first, this alone resolves it in many cases
- Use the Average Cost Calc. Overview on the item card to trace exactly where the wrong value crept in, period by period
- If the cost genuinely needs correction, use the Revaluation Journal, that’s the proper supported way to revalue inventory, not manual adjustments
- Run Adjust Cost again after revaluation, then Post Inventory Cost to G/L
One heads up, if the item was already sold or transferred after the point the cost went wrong, Adjust Cost will post correcting entries to those downstream transactions too. Worth giving your finance team a heads up before running it.
What version are you on, and what’s your Average Cost Calculation Type set to? That’ll help narrow it down further.
Thank you for the explanation and assistance.
I have an issue where the value of an item journal entry was too high; how can I correct this?
The unit cost is correct, but the value recorded during inventory valuation is excessive.
If the Unit Cost is correct but the Inventory Value is too high, then the issue is likely with the Value Entries/valuation rather than the cost itself.
A couple of questions:
- Which NAV/Business Central version are you using?
- Is this already posted, or are you seeing it before posting?
- Can you share screenshots of the Item Ledger Entries and Value Entries?
If it’s already posted, I wouldn’t recommend changing the entries directly. In most cases, reviewing the Value Entries first and then using a Revaluation Journal (if a correction is needed), followed by Adjust Cost - Item Entries, is the supported approach.
Share a few screenshots, and we’ll be able to narrow down the root cause.
If you’re still stuck, feel free to reach out. Happy to help.