Hi
on take we had a qty 1 of an item valued at £ 76.5K
It was then found that this value was actually for QTY 2. So…
I wrote off the qty 1 @ 76.5K and wrote on qty 2 @ 38.750K each. on posting the journal everything look great…
That was until we ran the Adjust Item Costs/Prices…at the end of the month. Then we see the entry is now qty 2 @ 51K each.
Somehow we have increased our inventory to £ 102K and a posting to the invenotry adjustment account of £ 25.5K.
Now being a simple user of SAP previously I am to say the least perplexed as writing off and writing on did not cause this problem. Any ideas ? Should I go to the top of a very large building based on a decision to use Average cost. Or is there anyone out there who can save me from a horrbile end ??
The reason you have an average cost of £51K is due to the fact Navision uses periodic average costing, using the positive adjustments of historical transactions on the same date to calculate the average. So you have now booked in 3 in total, for £153K giving you your average.
You will need to process an inventory revaluation journal for the initial one entered and correctly value this entry and then run the adjust cost item entry which will set your average correctly.
Ok I understand, sort of. Would this problem have not occurred if the write off was on one day and the write on the followng day ? I know this sounds simplistic however I want to document this process for my finance dept.
thanks and thanks for your help
Regards
Michael
Hi Michael
I believe this would make a difference. In a simple test I did the following:
26/06/07 Booked 1 on at £10.00
26/06/07 Ran Adjust Cost and average cost was £10.00
26/06/07 Removed 1 at £10.00
26/06/07 Ran Adjust Cost and average cost was £0.00
27/06/07 Booked 1 on at £15.00
27/06/07 Ran Adjust Cost and average cost was £15.00
Hi Adam
I too ran a test with the same results so its a solution and also something to be aware of.
Thanks for your help.
Regards
Michael