Hi, I am using Navision 3.7 and Costing Method is Standard. Would appreciate some help on the following questions on inventory revaluation. 1. If there is a change in the standard cost of an item, why must I go through the revaluation process? Can I just update the new cost into the Item Card? 2. If I have Open Production Work Orders and Sales Orders, they would have register the old cost. Does the revaluation process automatically update the Unit Cost in those locations? Or must I manuallu do it? Oliver
Hi Oliver, 1. You cannot change the unit cost on the card because any open Item Ledger Entries will not be updated with the new cost, therefore your Inventory Valuation will be incorrect and also any new sales that are done will be recorded against the wrong unit cost (because of FIFO application). 2. Any open documents (sales orders, prod. orders etc.) will need to have their costs refreshed as they will still hold the “old” cost. With Sales Orders though, when you post them they will post with the latest cost and then when they get adjusted they will pick up the cost from the ILE they are applied to. Good Luck, Steve
Hi [:D] Serves me right for pressing reply then making a cup of tea. The below was typed and submitted when no reply existed - no offence intended Steven! If you change the value of the standard cost field on the card your inventory valuation will be incorrect. If you purchase one at £5 and change the standard cost on the card to £6 and run the inventory valuation it will tell you the value of your stock is £5 - clearly wrong from the concept of standard costing. The process will not update the cost visible against the orders, however the process does contain revaluation journals, so the actual cost of each order produced and sold will be reported correctly in the ledgers and reports like the customer/item sales, once the adjsut cost item entries routine is run (after you have posted these revaluation journals of course).