Inventory Cost

I got a client with a completely fu… up inventory. Most of it originates back to old postings in 1998 due to errors made by the programmer back then. Lately more errors have come - because no adjust inventory cost was done before upgrade to Attain! (me! [}:)]). My only solution I currently see is to “wipe” out the full inventory, (not actually delete it - but wipe out all cost information fields - that would destroj the statistics). Have anyone tried this and what was your experience[?]

I tried this once in Financials 2.00d. A lot of errors had to be corrected: the quantity on-hand pr. location was incorrect, the applied entries was incorrect, the values was incorrect too. And the bookkeeper used to post directly on the inventory account[:(]. I did this: *All item ledger-entries was totally reopened and field “Cost is Adjusted”:=FALSE. *All item ledger-entries was reapplied. *The entire inventory was zeroed via item journal. *Activated “Adjust cost” and “Post inventory cost…”. *(now there was no quantity on hand and close to zero value according to the item ledger-entries). *In the general ledger the bookkeeper zeroed the balance on the inventory accounts (i.e. after having consulted the accountant). *New inventory accounts was created and refferred to in the inventory posting groups; the old accounts was blocked. *New quantity on hand was entered with correct prices * - and that was about it… I did not change the statistics on the customer legder-entries (Profit) nor on the posted invoices. I used some time doing this (!), but it worked[8D]. Good luck (you’ll need it!).

Anfinnur, Thanks. I remember back in the good old 2.00 days[:)] then this job was actually rather “easy” just as you describe. But now with Attain things aren’t so easy anymore - now the application entries and value entries complicate things even more. So I’m still looking for someone who tried this with Attain.

Erik, You don’t really say what the problem you are trying to resolve is…Is it (i) the Inventory Costs posted are incorrect, or (ii) the Applications between item ledgers are incorrect. Basically, Wiping out the costing information is tough…You might have to (i) zero out all the inventory, (ii) Make sure there are no un-applied entries and run your costing adjustments, (iii) Make any manual postings to fix the Inventory accounts, (iv) Repost the inventory at the correct cost. As you say, 3.x is a different world.

Chris, We actually got both the problems you describe. You don’t write it but I’m not seeing you describe any programming here! Just setting the inventory for the items to zero (using the Phys. Inventory Journal) doesn’t do it. Many items end up with zero inventory but still a posted value (not to mention expected value!). So some level of program is needed, and I’m basically thinking of this: 1) Adjust cost and post 2) Zero-out inventory (as you describe) 3) Manually (using a custom program) adjust the posted cost entries for all items not giving zero to zero. 4) Re-enter the full inventory (incl. costs) using a custom import into the inventory journal and post as a pos. adjustment. This should be able to do. The only problem is that all items received must be invoiced before we can do this. And that’s a problem to my client.

I’m always a fan of programming :slight_smile: I think what you are looking at is basically what I was saying as well. If you can keep document numbers/entry types/posting dates (doubtful) the same in step (4), it will help find data easier in the future. The Received not Invoiced will be an issue if they have consumed some of that inventory. If they haven’t, you can just skip those records…If they have, you have to actually create a fake invoicing entry as well. Another thought which might work would be to re-create all applications. I have done this in 2.01, but not since. Here were the steps, if I remember: 1) Delete all “Application” entries in the Item Application Table. I think there are entries created initially…we want to keep these. I looks like these are the lines with OutBound Entry No. = 0 in Attain. 2) Reset the Item Ledger Entries. The following fields have to be cleared…Remaining Quantity (Quantity) and Open (True). 3) Copy the Application Logic from Codeunit 22 into a new processing report. This report should run against all entries (I think running it against all negative entries would actually work too). 4) Run the Inventory Periodic Activities. In theory, by fixing the Applications, you should get Posted Costs balancing as well? (As long as the Cost Posted to G/L is what was actually posted). A couple of the areas which would require a bit more looking into (I didn’t have to worry about these in 2.01) are Transfers and Consumption. I like this method as you still have all your inventory linked to the correct documents/dates and nothing from the past could come back and somehow bite you later as we are fixing the source. The problem with any fixes here is that you have to do the work to completely try the fix, and then you may hit an issue that can’t be worked around. Obviously, this isn’t for the faint of heart (or even the sane). But, as Malcolm Forbes said “If you have a job without aggravations, you don’t have a job.” If you want to discuss specifics, feel free to E-Mail me.

Chris, What I’m worried about here is the ValueEntries. What will happen to them? And what to do with them?

Erik, I don’t think the value entries will cause a problem (I haven’t tried this in 3.x, so I’m not sure). We are leaving all the value entries the same. Therefore, the Adjusted Cost and Cost Posted to G/L do not change. After we remove the applications, the G/L should still balance. When we re-apply the Items, the Inventory Periodic Activities should then change (1) the Adjusted Cost based on the actual application and then (2) the cost posted to G/L based on this cost. I would liken it to Expected Cost Posting. The first cost you post may not necessiarily be correct. You always have to run the Inventory Periodic Activities.

Chris, IT WORKED - THANKS!!! I don’t really know if it maked a difference or not. But I first changed the “Adjusted Cost” field of the Value Entries of Sales and Negative Adjustments to 0. But let’s also say that this is NOT an easy task and has maybe been a 100 hour project to get it right. But now it works and the client is happy again! [:)] So I’m happy to…

We are currently having this exact problem! This fix sounds logical. Are the steps outlined the ones we should follow? Do you have a more accurate/detailed procedure? Could you explain the procedures for Received not Invoiced…I am not sure what is meant by “create fake invoicing entry”. Does anybody have an update to see if this keeps the problem at bay since it has been almost a year since the last post? Thanks!

I have the same problem, but after upgrading to 3.70 it’s all simple… Just check the “Applied Entry to Adjust”-field on ever Item Ledger entry (by using SQL, I suggest) and then run the whse adjustment periodic tasks. Providing the customer had not zeroed the Item Cost (LCY) field thus creating value entries with Cost Amount(Actual) = 0, the costs all lined up nicely, yielding a nice looking Inventory Valuation report unlike just after the upgrade when everything looked like crap.