One of our sites (running NAV 3.70B) has been working for 4 years without Inventory to G/L Integration. Every month they run reports (based on Inventory Valuation) and make manual journals to post the inventory balance. Adjust Cost Item Entries is used on a rugular basis.
Now we would like to use the Post Inventory Cost to G/L; posted every week or month. When we are confident of the results then we will move to automatic cost posting.
Yes, that’s right. After four years we wnat to post the costs to the G/L accounts using the NAV functionality…
Have you made such a changes and was it successful?
How did you manage the transition from manual to automatic posting?
FYI - This is a request from one of our senior accounting managers.
I have tried this a few - or severeal - times.
Basically my schedule goes like this:
*Post your inventory up to date (orders, journals, …).
*Make a copy of the database(!).
*Disconnect inventory from G/L (un-check “Automatic Cost Posting”).
*Run the “Cost Adjust”-batch.
*If the inventory is up to date, then make a batch putting the stock into an Item Journal.
*Create a Phys. Inventory Journal.
*Zero out the stock (“Qty. (Phys. Inventory)” := 0); post the journal.
*Run the “Cost Adjust”-batch (again).
Now - the total Quantity on stock should be 0,00 and there should be no open entry.
If open entry exists the problem usually is caused by wrong use of Location-codes: purchase into BLUE, selling from RED.
More interesting - is the total stock-value very close to 0,00? As Unit Cost-values are rounded values based on Quanties mutliplied by Unit Cost containing up til 5 decimals you will probably not reach 0,00 exactly. You must decide what is a reasonable imbalance.
If imbalance is not acceptable you have to make some “manual” checks and/or changes like
-Check which items do have non-acceptable imbalances.
-Check made applications - are those correctly done? If necessary, unapply item-transactions and reapply again; make a batch for this. And run the “Cost Adjust” afterwards"!
When you are staisfied with the numbers, continue
*Make a batch that sets the Value Entry’s field “Cost Posted to G/L” to equalize “Cost Amount (Actual)”. Mind if you use ACY (Additional Currency)
*Manually post all “Inventory Accounts” to 0 (zero); the Balance Account might be “Inventory Adjmt. Account”.
*Block the “Inventory Accounts” (these shall not be used any more).
*Create new “Inventory Accounts”; remember to un-check “Direct Posting”. And make sure that the references in the Inventory Posting Groups are changed as well.
*Check that the Unist Costs in the Inventory Journal (containing the old og newly counted inventory) is correct.
*Connect the Inventory the G/L (check-mark in “Automatic Cost Posting”).
*Post the Inventory Journal.
Expect this to take some time, especially if you have “a lot” of transactions.