Revaluation of Average cost

Business Central/NAV User Forum
1

Hi,

I’ve been reading through this site and found quite a number of problems similar as mine. But still i am confused on what to do and this is already making me sick.

Our average cost is obviously wrong. Our users posted Assembly Orders and positive adjustments at zero cost and eventually sales are posting at zero cost. I don’t want to dig deeper into the problems anymore as i want to just solve it.

I’ve tried revaluation journals Calculate per Item Ledger Entry but it says I cannot revalue items with Average costing method.

I’ve tried the other way Calculate per Item but also not possible since we have negative inventories (still for adjustment) and we also open entries.

What should i do?

can anyone give me a step by step process on revaluing our Inventory?

Thanks

2

First and foremost:
It does NOT make any difference what costing data is present in different Documents (Orders, Invoices, etc). You may leave them even blank, what system fills in is Last Known cost from Item card, which is approximate value for all costing methods. Besides, all possible indirect costing (e.g. Freight, Customs tax, whatever else) are never added to cost in Docs, they may be even unknown at the moment of creating those docs.

All costing info is collected in Item Ledger’s supplemental Value Entries table. When you post Docs, those approximate costs are copied to this table. Now comes the important part - to update costs to actual values and add indirect costing, special Batch Jobs must be periodically run.

There are two of them - ACIE (Adjust Cost - Item Entries) and Post Inv. Cost to GL. The second one can be omitted, if Automatic Cost Posting is turned on in Inventory setup.

How often ACIE needs to be run depends on many things (Inventory size, transaction count per day), but at least once per month should be the minimum. Search forum for ACIE, there is a bazillion of threads about it.

There are 2 more important rules to follow:

  1. NEVER post anything DIRECTLY to GL Inventory costing accounts - those must be blocked for direct posting to be sure noone tampers around them. IF you do, the results will be unpredictable and by no means inaccurate, especially with Average method !!!
  2. all cost related reporting must be done from ItemLedger+ValueEntries, NEVER from posted Documents.