Dear all,
I am entering Opening stock entry in Navision 4.0 SP1(date 31/03/07)
I am entering it as follows (an example here)
Item No. qty unit amount amount
Item 1 10 10 100
item 2 10 10 100
now total amount is 200
I am entering it through positive adjustment of item journal.
Now my querry is I have a G/L account stock-in-hand
I want to update this stock-in-hand(G/L account) with amount 200/-
So, when I will post this Item journal , Can I update the stock-in-hand(G/L account) automatically
or I have to pass a General Journal entry seperately for stock-in-hand(G/L account), for the amount 200/-
in short
Does I need to follow 2 steps
-
Go to Item Journal ----- enter opening stock of items (using positive adjustment)
-
Go to General Journal---- pass an entry of opening stock value( i.e. 200/-) in stock-in-hand(G/L account), using balance account type as suspense account, and post it
or I can do it in a single steps
using Item journal
You can do it in a single step, assuming you have automatic cost posting turned on and inventory posting setup is defined to match your GL account, if it is not then you would need to define it correctly, whilst the other side will go to the inventory adjustments account from the positive entry, which if you have set up as the same account will naturally show a balancec of zero.
This depends upon how you are taking on the opening GL balances as much as anything.
I would advise you post a journal, then look at the resulting transactions from the registers to see the GL impact.
Is it necessary to close the fiscal year, after doing all this, in order to show it as opening balance
I am entering opening balances as on 31/03/07
and my next financial(fiscal) year is starting from 01/04/07
No, as the inventory account will be balance sheet, it will not affect this question, but Yes you should still run this process to close the fiscal year.
Dear AdamRoue
I have entered the items as per your instructions
i.e. I have turned on
Automatic cost posting
and automatic cost adjustment
and after that I entered the opening balances of items( in a test database)
after posting it
two accounts were affected
inventory account 200/- (debit entry)
inventory adjustment account -200/- ( credit entry)
but i want entry only in inventory account( as this is our opening stock)
so, I read this article
http://dynamicsuser.net/blogs/alexchow/archive/2007/11/06/entering-beginning-inventory-balance.aspx
in which it is suggested that we can transfer the credit account(inventory adjustment account) to a suspense account
when all opening entries(assets,liab,debtors,creditors etc.) will be entered, this susense account will become 0
so my querries are
-
Is it the correct approach, which I am following for entering opening balances
-
secondly, I have read in online help that we have to run Adjust Cost - Item Entries and Post Inventory Cost to G/L batch job also, in order to affect G/L accounts
but, when I posted item entries, all G/L accounts get affected automatically, then what is the use of using Adjust Cost - Item Entries and Post Inventory Cost to G/L
i.e. in which situation we will use Adjust Cost - Item Entries and Post Inventory Cost to G/L
Please clarify these points in details
The answer to is it correct depends upon your routine for entering ALL opening balances, you are making up the stock figures with the import, whether you want this to go to inventory or a suspense account is up to you, the same is true of the balancing account. If you let the system hit the inventory and inventory adjustment accounts you need to take this into consideration when making your opening balances journal, otherwise you will double your inventory. I prefer to have no journals going directly to the inventory GL so I can reconcile, pretty much as Alex suggests. However if you want to push these opening entries from the journal into suspense you need to alter the posting routines during this period, remembering to change them back.
Many ways are “correct” as it depends upon what you are doing and how you are going to achieve it.
Have a search on adjust cost and post to G/L, there are lots of discussions and the roles change per version and setup.
As for the comment “but i want entry only in inventory account( as this is our opening stock)”
Remember it is accounting, you ALWAYS need a balancing entry. If this is the adjustment account or the suspense account it will be resolved when the opening balances of the GL are keyed into the system
So, is it correct to use suspense account(rather than inventory adjustment account) for credit entry ?
as it is just an opening entry and i dont need inventory adjustment account(in case of opening stock), the same is suggested in the above mentioned link
I am not importing items, I am entering them manually.
Few other querries are also there
- suppose I entered opening stock of item with positive adjustment, and made mistake in qty or unit cost field
and i posted the document. How can in rectify it now
- If I have 100 items as openinng, In G/L account it shows 200 entries(100 debit, 100 credit), but I want
that it shows it as a single document i.e.
document no. --------- open/bal/item/001 debit — 1000 credit —1000
is it possible
So, is it correct to use suspense account(rather than inventory adjustment account) for credit entry ?
Both are correct [:D] Talk to the accountant of the site, what do they want to see and how are they handling the poening entries COA to COA
as it is just an opening entry and i dont need inventory adjustment account(in case of opening stock), the same is suggested in the above mentioned link
You do not need an inventory adjustment but you need a balancing entry, how you do this depends upon the WHOLE approach to the conversion.
I am not importing items, I am entering them manually.
It does not matter the principle is the same.
Few other querries are also there
- suppose I entered opening stock of item with positive adjustment, and made mistake in qty or unit cost field
and i posted the document. How can in rectify it now
Another inventory journal, a revaluation journal, it depends what the error is and when you find it.
- If I have 100 items as openinng, In G/L account it shows 200 entries(100 debit, 100 credit), but I want
that it shows it as a single document i.e.
document no. --------- open/bal/item/001 debit — 1000 credit —1000
is it possible
Probably through extensive development but not recommended, ask the question in a new thread in the developers forum. Remember if you take this approach you valuation is ZERO, and will not balance to your inventory valuation report.