Hi all ,
Really this case ; makes me confused a lot .
My knowledge about cost in navision , is not bad ; but iam feeling that reaching a very locked door.
I am facing many problem in average cost , Some costs are wrong .
I will display my first case : I look for the reason of having wrong average cost and I know that the unit of measure was entered wrongly Like pack = 1 . and entered the unit cost as for one pack 10 $. enteered many ledger for this item as pack=1 = 10 $ . those entries are posted for 10$ for ech unit cost .
After a while three months the user realized that the unit of measure is entered wrongly . and change the pack = 16 and pcs =1 .
then after they started to purchase on pcs 0.625$ … and a lot of purchase is done after …now the average cost is wrong but started to be corrected little by little .
Is there any way to correct the old entries . is any way in coding wise to correct the entries ? or any else way to correct the old entries .
you can revalue the old entries.
You could remove all of the stock when it is fully invoiced after running the cost adjustment routtines, and then book it all back in at the correct cost. Alternatively revalue the entries, although obviously depending how you are average costing the COGS will be posted in set periods so you will need to verify the approach here.
Thank you Rashed and adam Roue .
yes I can revalue old entries : yes i can do it BUT as i said this case is still confusing me tooo much . that 's why i need your maximum help ?
Should I revalue ALL the old entries or only some of them?
How i can know which entries must be specified to be revalued ?
Should only ii revalue postive adust entry type and purchase OR I HAVE ALSO TO REVALUE THE TRANSFER IN ENTRY TYPE ?
AdamRoue …you told me that i could remove all of the stock ? what do you mean excatly , sorry but please consider me in this case that i am very beginner , because i cann’t till now put rules for correcting any wrong cost i have ? and i need finally to understand this case
you told me alternatively revalue the entries … how per valuation date or per entry type .
I am repeating i need your maximum help , as you always the experts
I am still thinking there must be a way to be corrected by coding … correct me if iam wrong
It depends what you want to achieve.
If you were to remove all of your stock through a physical inventory journal and have controlled it appropriately when you bring the stock back in then this will be the average cost.
The revaluation simply depends. You need to analyse every entry and decide whether it requires revaluation, as well as justifying the revaluation.
Hi Adamroue ,
If i go through the option to remove the stock through physical inventory journal .
In which date should I bring the stock back … in today date ?
If i do revaluation by the system , from revaluation journal , on fuction → calculate inventory value—> as i am seeing the systemwill revaluate all the open purchase and transfer … correct me if iam wrong , but As the system changing in the cost for each purchase that is stiil opened ?
is dangerous to be done in this way ???
Shall i will be affected in worng cost for a period of time ? and having a right avergae cost today ?
you told me to justifythe revakluatin … why ?
Thank you AdamRoue …
Well you need to be able to justify the revaluation to answer any auditors questions.
I would remove the stock and bring it back on on the same date, so yes today.
The calculate inventory value revalues open inventory, it will not revalue open purchase orders or transfer orders as they are not in stock. You should also consider the manual entry of the application on the line as you can pick the transaction in this manner.
There is no danger of doing the revaluation, it depends though on the volume and the average cost recalculation period, you can feel like you are on shifing sands with average costing, which is why if you control it prpperly the removal of stock makes it much simpler.
The cost will post from a revaluation depending upon teh circumstances. If the period of the inbound is still open it takes this date, if not it is the date you process the revaluation, still that is my memory from a couple of years ago so you would need to check that.
thanks ADam Roue ,
I ma stiil working on this project vand i am trying every word you saying .
do you have any illustration … how the average cost will work if we have negative in inventory —>
Should i revaluate if i have negative in inventory ----> OR should we correct the inventory first then correct the cost ?
Correct the inventory first, it is physically impossible to have negative inventory, so set it to zero and then sort out the costs.
Hi AdamRoue ,
A lot of thanks first for you for helping me in this case .
starting to understand little by little the costs in navision .
1st question and in very clear way : when you GO → Warehouse–> Inventory–> REvaluation Journal → Function–> Calculate Inventory value–> Item no. XXX ----> posting date 04302009 —> Document no. =REV to 7500 -----> Check on CAlculate per item ----> press ok
Now the journal will be filled —> in Item XXX —> Qty = 10 ----> Inventory value calculated = 50000 ----->I change to UNIT COST REVALUED = 75000 – → because i want to change the unit cost frm 5000 to 7500 —> and then post .
MY QUESTION is in the when i press post —> how the system is dealing with valuating the inventory —> how is partioning all the adjusted cost to the purchases and transfer that are contains still stock ??? I need a full illustration …and a very simple one —> as i read all the navision cost documentation that i have and still for me they are written in very cmplicated way .
I am repeating my thanks .
The simplest illustration and example will be for you to press post, and then view what it has done.
The adjustment posting depends upon your setups and open periods.
The way you are processing this you are ONLY revaluing the stock - the on hand inventory.
Any item on a transfer order already has the cost with it. I would recommend clearing down all transfer orders, especially if you have average cost by location set.
As for the purchase orders this are irrelevant, they will be booked in at a cost, and when the invoice comes in they will be adjusted, so this will flush through.
I will do the post ,… and copy the value entries to excel sheet … I will try to anaylze and send my questions … my problem is i am having huge data … i will try to do one small as example … but i am suffering a lot in doing all that … where i am expecting a guide and examples for all those internally procedures
Our average cost is per item only and not per location set or variant set . Still if you have more than purchase on hand inventory order to be revaluating …how is it partioning the needed amount to be revalued , and if you have more than transfer order on hand inventory … how is adjusting and prationing the needed amount to be adjusted …I am feeling that there must be special examples and documnetations to illustrate what’s happening internally instead of my suffering and analyzing .
Let me tell you something , You know , i ve spend too much time in the complicated documention to understand the internally procedure of averagecost calclation ; then i get it by accident and it was perfect …
I am looking for such simple and enough words to understand the internal procedure to do revalaution SUCH LIKE THIS ONE WHERE IT WAS enough to me to understand the average cost calculation … iam hoping to get the same illustration and steps for revaluation… I don’t know who wrote the following steps to know how the system is working to calculate the average cost ; but they are more than perfect … We need such documentation in Navision —Easy Life
|Average cost calculation–>The following steps are not foolproof yet but it has helped me solved many average cost issues.
|1) At item card, click on Item → Entries → Value Entries to open the value entries screen.
|2) Copy all records in the value entries screen to Excel.
|3) In the Excel sheet, sort the records by Valuation Date.
|4) Add a column called Cost Amount to the Excel sheet. Cost Amount = Cost Amount (Expected) + Cost Amount (Actual). Use Excel formula to populate the Cost Amount column for all records.
|5) Add a column called Cost Amount (Accumulated). As indicated by the column name, it is the accumulated value of Cost Amount from first record to the last record. Again use Excel formula to populate this column.
|6) Add a column called Quantity (Accumulated). Quantity (Accumulated) is the accumulated quantity from first record to the last record. Use Excel formula to populate this column.
|7) Add a column called Avg. Cost. Avg. Cost = Cost Amount (Accumulated) / Quantity (Accumulated).
|8) Now, look for the last inbound entry record for each Valuation Date. The Avg. Cost for the last inbound record for each valuation date is the average cost for the day
You have one point in your head that you keep mentioning, and this is open purchase orders.
this is simple, there is NOTHING to revalue here, because you do not have them. You can forget open purchase orders [:D]
Also there is no easy way to do this. A couple of years ago myself and a colleague spent weeks trying to verify teh average costing method on a live site using transfer orders and journals. They were a high usage site with thousands of daily transactions. There is no easy way to do this, you have to find the end of a piece of string and keep pulling. Once you understand what it does and how it does it you can verify if it processing, a bug, a modification or just the way it works.
I cannot pass this onto you, I do not have it, this was all in my past. You need to gain this yourself, which is time and hardwork I am afraid. I would advise you take a copy of the database so you are not investigating shifting sands, and then start preferrably on an item with very few transactions.
hi Adam ,
Thank you for all your support , you make it easier for me , still having little confusing about the inetrenal procedure done by system to implement revaluation , BUT no problem i think i will understand it now or later .
Adam i still have many questions about cost , now I moved to standard costs in manufacturing .
I prefer to continue in this topic , to post all my cost questions in this Topic , it’s another subject about variance and standard cost , Can I continue in the same topic here ?
waiting for your anwser , so that I can post my question .
Thank you Adam
It would make more sense to post a new post - otherwise you can never mark them as complete.