Transferring Inventory doesn't change the GL

I’m having an issue, and I think it is just my understanding of NAV. We have multiple locations in the system. Lets just say I have two, Location 101 and Location 102. I also have divisions which are basically the same thing but they are global dimensions. Again, they are 101 and 102. When I purchase $50 of inventory, I make sure the division matches the location. From the chart of accounts, when I have it filtered to 101, I can see that my inventory goes up by $50. Then I create a transfer and transfer it from 101 to 102(location). I ship and receive the transfer but nothing changes from the chart of accounts. When I look into it I see a positive $50 and a negative $50 for the shipment and the receipt. I tried changing the inventory interim group, but that didn’t fix it. What am I missing? Thank you for the help.


Hi Jason,

Yes, this is how it works. But it depends upon how you have setup your inventory posting groups. If you have the same inventory account in GL for both locations, then your transfer will be posted to the same account.

What did you expect it to do?

I have moved this post from “Technical Forum” into “User Forum”, as this is a common end user question, and not really technical (like having to do with installation or servers etc.).

I guess I was thinking that the inventory would move division, so from 101 to 102. When I set the flow filter on the chart of account I would want to see the inventory for whatever division I set. So you have a different GL for every locations inventory? That doesn’t seem correct to me. I thought that was the point of the dimensions? Again…might just be my thinking is incorrect. Thanks for the reply.

It sounds as if Locations for Inventory and Divisions for G/L are two different things?

It sounds like you have a similar setup to my company. We have “Division” as our Global Dimension 1. They don’t align with Locations for us; we’re more interested in it when applied against sales (UK Divisions vs Export Divisions). However when looking at Chart of Accounts you can use the Limit Totals feature (CTRL+SHIFT+F3) and you should see one of the “limit” filters actually called Division Filter (picked up from your name for that Global Dimension:

Limit Totals Division Filter.JPG

Once you do that the values in your Chart of Accounts will reflect just those for that Division. Your Inventory account should then show plus 50 for one Division (102) and minus 50 for the other (101) in relation to that transfer.

If you prefer to have separate G/L Accounts per Location then you would have to specify those in Inventory Posting Setup but I think you need to make sure each Location’s entry has those distinct G/L Accounts set up in the Inventory Account, not (just) the Inventory Account (Interim), which is only used with Expected Cost Posting which I’m not certain would come into play with Transfers even if you have ECP turned on (though I’d have to set up a sample scenario to be sure).

I hope that’s helpful.

I have NAV 5 sp1, so I don’t have that option. How does one get their value of inventory by location then? The inventory valuation report takes forever to run! But maybe people are more patient than me?

Thinking on it more, it occurred to me that IF you specify a value for your Division Dimension on your Transfer Order (I assume that’s what you are using) then it possibly/probably would apply that to both ‘sides’ of your transaction, which would not be any use, I think. On the other hand if you don’t specify it, it’s possible it wouldn’t be there at all, which would also not be helpful. Sorry if that’s added to confusion. I think I may need to set up a scenario in my test system for my own benefit now, unless Erik has a greater understanding of that already perhaps.

I think you are right, because there are 4 entries. 2 for shipping and 2 for receiving. Both cancel each other out.

I know why. It transfers the inventory from the from location into my transit location, then when receiving it ships it from transit to the to location on the transfer order. The problem is I can’t split the divisions when it is moving the inventory to the transit location.

And maybe I’m doing this the wrong way?

Yes, I agree now, it feels that’s where the problem lies for you. I’d stop short of saying you’re doing it the “wrong” way but if you find the Inventory Valuation Report takes too long to be useful then maybe what you’re doing isn’t the “best” way for you. Separate G/L Accounts may be better for you.

Inventory valuation report? Do you mean calculate inventory cost? Even if it takes forever to run, then you should still run it. I would recommend to put that up in the job queue.

I think the problem with me setting up a GL for each location is, we have 12 main locations and then each service person has a truck. So closer to 85 locations? Not saying that I can’t do that, but it does seem to undermine the dimensions.

Don’t know how it would undermine dimensions. They are not the same.

But if you need your inventory to move from one G/L account to another, then you need to set that up with posting groups per location. No way around that. But unless you need to see this in G/L, then there is no reason to do it. Just like you may assign the same account no. to i.e. all personal trucks.

A dimension (like your division) is a marker to divide your individual transaction. But both side of i.e. a transfer transaction will get the same dimensions. It sounds like you need to be able to mark a transfer with a division from and to code. That “could” be done via a customization, but I wouldn’t recommend it.

So if I were you, then I would revisit the actual requrement’s from the finance/accounting department. Exactly what is it that they need to see happening in G/L when you transfer inventory?

I thought it was standard in Navision that if you add a dimension to the location card then that follows through to the Item Journal and then to value entry and thus posts correctly in the GL.

It is possible though that I wrote code to do this, as it is quite a common request.

Just checking and no it’s not standard, but an easy fix, just look at the customer or item card and copy the Default dimension code from there to the Location card.