Revaluation of Multiple Inventory Items

Following an error that has been introduced in our System, our inventory values have ALL gone off by a significant margin. Whereas the real value of our inventory is circa $800k, our system is reporting a valuation about $250m! This is not just alarming, but is proving quite a headache to resolve.

I am using MS Dynamics NAV 2009, in Zambia, South Central Africa. We have over 10,000 items of inventory that we manage across a number of different sites that are fed from a central location.

It was put to me that I could do the following:

  1. Set Automatic Cost Adjustment to “Never.”

  2. Post a batch Inventory Journal with negative adjustments to clear out my entire inventory, as at the fateful date.

  3. Repost all the inventory quantities by using a positive adjustment with zero value.

  4. Set Automatic Cost Adjustment to “Always.”

  5. Perform an inventory valuation inserting the correct unit costs.

I have successfully performed all of steps 1 through 4, but I am struggling with step 5.

Because I have 10,000 items, I need to be able to perform a mass revaluation. I tried using the Data Migration too, but that didn’t work, as it keeps populating the normal inventory journal lines, and not creating a revaluation journal, even when I have activated all the relevant fields. I even tried to create a Dataport with the relevant lines, but it is behaving similarly.

I have noticed that the revaluation journal is merely a form (ID 5803) that feeds Table 83 Item Journal Line. I need an upload feature that will populate the Table 83 in such a way that it performs a mass import of items for revaluation.

Are there any ideas how I can achieve this? I have been foraging this forum for the entire afternoon to no avail.

While I am here, there is another problem I have noticed. The Revaluation Journal will ONLY accept entries that are applied to previous entries. I do not want it to do this. I need to be able to revalue all of my inventory freely…

Thanks for all your help.

Well, the very term REVALUATION says that something existing is revalued…

Post a positive adjustment with required cost (I understood from your question that you have zeroed out your messed up inventory now). System will default to last known cost from ItemCard, if there is any, but you can change it.

Thank you.

However please note that the system is not allowing me to revalue the inventory whatever the value that the inventory has, positive or negative (I have tested several scenarios). Also, My issue is not really with the zero values. Theoretically speaking, if I have an item of inventory with a positive quantity but zero value, I would expect it to be possible to revalue that item from zero to something positive. And that is the situation that I was trying to test.

You state that I should post a positive adjustment with required cost and that the system will default to last known cost from ItemCard, which I can change. The issue is that as a consequence of the error, the items cards are all 300 or more times what they should be in relation to Unit Cost. Also, when with Automatic Cost Adjustment or running ACIE, these inflated values are posting to G/L. This is what I do not want to happen. I have tried to change the Unit Cost on the item card for a number of items, but the system wouldn’t let me do that, since the items had some postings.

My issue is that I cannot revalue the inventory, either by running a batch process or manually.

Thanks for your help.

ONLY in case you’ve zeroed out your inventory. In such situation there will be no lines to select in REVALUATION journal, as result, you can’t use Reval. Jnl. to set correct costing

.

Unit Cost in IC is informative only, not necessarily absolutely accurate, hit F1 in this field and check when & how it’s updated (the description is too long to repost it here, sorry). Whenever system inserts it as default value (in inward docs and journals), you can and in most cases NEED to override the default with real value.

Maybe you do not use it as intended? Enter Item No (and Location if it is set up to be mandatory), then go to Applies-to Entry and click the downarrow there. You MUST choose one line from the form that opens to be able to post a revaluation. If the form opens empty (no lines, only header), that means there is nothing that can be revaluated.
This is how revaluation works. Accordingly, if you have zeroed out inventory, your only option is Positive Adjustment.

I have managed to resolve my issues regarding the errors that were introduced in the inventory values. The answer lay in what might appear to be a surprising area, and not intuitively one that you would associate with a correction of inventory values in the system.

Mathematics. To be more precise, simple arithmetic.

Basically, by discovering how MS Dynamics NAV 2009 calculates the Weighted Average Unit Cost of inventory items, I was able to exploit that knowledge mathematically in order to force the system to recalculate the inventory unit cost and consequentially the valuation. The same method also changed the Unit Cost on the inventory cards to the values that I was enforcing. Moreover, the degree of accuracy of this method was greater than 99% with an error swing of +(-)0.01 to +(-)0.02%.

In total, about 6,000 inventory items were affected, and have now been corrected. I was able to do this via a mass posting through a batch upload (in fact I used the Data Migration feature on the Rapid Implementation Module).

In a later posting, when I find time, I will explain exactly what I did.

Thanks for all your help. I wouldn’t have discovered what I dd about the Inventory works without your valued input.