Hi,
Can anyone help me regarding this issue? why the INVENTORY VALUE / COST AMOUNT have negative value but FINANCIAL QUANTITY is 0?
Below is Inventory report (Physical by inventory dimension).
Below is details for 1 of the item in that report:
Item: "0500-MTN-DK1"
Warehouse: "FGWH"
Batch: "MISC"
Is it normal? or got wrong setup in inventory management?
Your receipts don’t have the cost, but the issue is posted with a cost.
What is your costing method?
Hi,
Thanks for reply. The costing method is such as FIFO right? In this situation, the costing method is Weighted Average
Run the inventory close for recalculation and re-analyze. I would say it is normal.
Hi Adam,
Could you give me the step, how to do the recalculation and re-analyze? I’m still junior in this module. Appreciate if you can show step by step…
thanks
Hi,
You can do the following for inventory closing or recalculation
Inventory and warehouse management>Periodic>Inventory closing and adjustment
select recalculation to get the latest cost.
then you can check your cost amount with the updated cost.
Can you show us the complete list of transactions, without a warehouse filter? The problem i can see is you have updated the stock without cost(may be through movement journal). That would effect your costing, if it is not intentional update the receipts with the proper cost (in closing and adjustment you have an option to adjust the transactions as well)
If booked in at zero the adjust would take the issues out at zero and the total cost would no longer be negative 
The issue will not be having a cost, unless there is a receipt cost. I suspect the cost is picked up from the other warehouse( if the inventory is not tracked financially at warehouse level)
Hi Kranthi,
The transaction is too many, how can i show to you? I believe it is come from that warehouse only. If you refer to the Excel figure, the total amount is same as report
None of it matters - the cost taken on issue is the average if financially tracked at warehouse it will be the warehouse average. Then it will adjust as per the inventory close. If the costing method is FIFO then financially the cost is taken from the oldest receipt in stock, but this is overriden in batch and serial transactions if the dimension is set to financially track. You could indeed get a negative margin thinking you were getting a positive one with later receipts at lower costs, but that would not be the financial principle of costing chosen by the business.
My main point is start to analyse once the costs have flushed through from the inventory close, not before! [:D]
In addition Kranthi’s original point is still valid - why has the original receipt got no cost? If you booked them in at zero through an inventory transaction and there was already stock it would impact on the average by dimension group and cost the issues at that cost.
Hi,
I ask them to recalculate it but the result still same. How can I check what is the root cause?
Start looking at each individual transaction and analyse the cost movement at each one.
The date I generate that report is from a non-closing date. Is it the root cause?
Yes if you were looking at the report, the closing date has the cost adjustments, but you were looking at the actual transactions in the tables at this stage I believe?
