Our customer has decided to change Inventory costing method at the end of fiscal year. They wish their inventory costing method to be FIFO instead of Standard Cost (used for manufactured items) and Average Cost (used for rest of inventory).
Although we have the general idea how to solve it - that is to decrease all inventory to zero, change Costing Method on every item to FIFO and then return all inventory through Item Journal – we suppose that could be a tricky operation, or even more, a completely wrong approach to this problem.
We would be very grateful if you could help us on this matter.
I don’t think it is possible to Change Costing method in Navision even after the qty is zero becausce of the Item ledger entries. This is a Control in Navision.
I suggest- Create New Items to have the new costing method, use Item Journals to move the Qty from old Item to the New Item.
I don’t think it is possible to Change Costing method in Navision even after the qty is zero becausce of the Item ledger entries. This is a Control in Navision.
I suggest- Create New Items to have the new costing method, use Item Journals to move the Qty from old Item to the New Item. Block the old Items.
You can change the Item Costing Method - write a report that makes a MODIFY(FALSE) so that the validation behind the fileds / tables are not called. Procedure would be:
Post negative adjustements (using old costing method).
Update Costs Items Entries and Post Costs to G/L.
Run report to change costing method.
Post positive adjustments (using new costing method).
Update Costs Items Entries and Post Costs to G/L.
I DO NOT RECOMMEND THIS PROCESS.
I do not recommend changing the Costing Method away from Standard particularly in a Manufacturing company unless your client works in a ‘simple’ environment and has very tight control of document processing for purchases. Delays in processing purchase invocies and finishing production orders combined with FIFO or Average Costing can make life difficult to reconcile in a timely manner.