Hi , I need to understand how adjust cost batch is working ,Report 795 and CU 5895 ? what is the concept about this batch ?
What is Item Application entry table ? and why is related to this batch ? What is item apllication Entry doing with this batch .
What is cost adjusted field in table item ?
What is Avg. Cost Adjmt. Entry Point table ?
I need a summary and examples about how is CU 5895 is working ?
Any one … know a little about this batch , please post it here …
wow those are some very specific questions. Let me see if I can answer as many as I can. what is the concept about this batch to make sure that actual correct cost is posted for all Outbound entries (sale, neg adjt., consumption,transfer out) based on inbound entries (purchase, Output, post adjustment, transfer in). For example. You receive an item on a PO and then you sell it. Cost of Good sold COGS hits GL at time of sale at the time the sales order was created. The vendor then sends you the actual invoice and charges you extra. So the COGS is not accurate, adjust cost routine will make the adjustment entry and hit the COGS account with difference. How does it do the matching entry on which PO item ledger entry is linked to which SO ILE. The answer is the Item Application entry. It records the application between outbound and inbound Item ledger entries. The cost adjusted field in item table is checked if all the inbound and outbound entries cost have been adjusted. This is a speedup for the routine so that it doesn’t have to look at every item everytime you run adjust cost. You can uncheck it and it will run again but won’t hurt anything. Table Avg. Cost Adjmt. Entry is used for items that have averge costing method. Adjust cost routine uses this table to find for the dates it needs to adjust average costing. The Cost is adjusted is set to true so that adjust cost doesn’t calculate every day for all the entries. You can uncheck it and adjust cost will calculate average costing for that date for all the entries and adjust COGS for any sale on that day. In item Ledger entry nav also keeps another boolean on inbound entries called Applied Entry to Adjust, and it unchecks it once the inbound entry has been fully applied to outbound and is fully invoiced. I think the above is a good summary.
Nice simple explanation of the ACIE. bravo!
Hi Rashed ,
Great … It 's a very good summary… But let me also summarize what i understand and what I need to understand more some advanced points … and please correct me if i am wrong in anything and help me to reach my main purpose .
Cost is Adjusted field in Item table : is a boolean field indicating the cost of the item has been adjusted or not .
Avg. cost Adjmt. Entry Point : is a temporary table filled by entries needed to be adjusted . the entries in this table will be deleted after you run adjust cost batch .
Item Application Entry table : Records the applications between outbound and inbound .
Applied Entry to adjust : is a boolean field indicating the inbound entry has been fully applied to outbound or not.
My questions are ?when we need to run this batch ?
From where do it start ? from item table or from item application entry table ? with which tables will it work? with value entry table or with item ledger table?
During running this batch ?
which date will be fitered ? posting date or valuation date ? and how it will be worked and sychronized internally with Item apllication entry table ?
does have any side affect if we have any negative qty on inventory ?
thank you ,
It seems that Nobody has read this batch of cost adjusting Report 795 ??? to be explained ???
if any one has read it … please explain more …
Any way … Please I need a new explanation related to this issue … revaluation cost ?
Where , when , how , should we use the revaluation journal to adjust cost ?
what are the advantages and disadvantage of te revaluation ?
How often should you run the batch routine to adjust costs? As often as you need is the answer. As often as you need accurate costs.
What is a revaluation journal? It gives you the ability to revalue costs - like booking in production without a routing, or a zero standard cost, then revalue the item.
Not sure what you mean by a disadvantage of revaluation, but an advantage is your data is correct.
Not sure what else you need after Rashed’s excellent explanation.
Hi ,
great ,
Sometime the revaulation doeson’t work with me ? specially if inventory is zero ? i just want to know if i am doing something wrong at working on revaluation journal ?
I need to know in ver simple way …how i should use this batch in the all the cases
Revaluation journal for standarcost … if inventory is zero … if inventory not zero
Revaluation journal for average cost … if inventory is zero …if inventory not zero
I know one and it was perfect to be used in revaulating the averagecost / by entering the item no. manually and enter the item ledger entry then post the entry .after that i am running the adjust cost batch and everything was corrected , but when i have a lot of postive entries or purchase entries to be adjust …it’s hard to do this for each itemledger entry .
and you know i need to correct the costs of the items … other wise the actual cost will be continued in registering the valyes in a wrong way …
thank you all for your help . i have also more questions about cost … but i will only satisfy by this now to be asked after .
How you do this depends upon the item - if it is in stock you can suggest it on the lines and the batch job, if it is gone you need to manually add it to force it through (well there is some difference I cannot remember it all off the top of my head - if it is not in the list you need to manually define it basically). The revaluation is ultimately the same for the costing method, although I believe the standard cost worksheet will update the standard cost of inventory items, but you need to use the revaluation journal to revalue items sold to push the costs through.
It is difficult to say if the revaluation is working or not when you say sometimes it does not work for you. I do not recall any issues with it, but that does not mean there are none - you would need to present a specific case when it did not work to get comments.
You really need to sit down and test out each scenario
Hi ,
yes i am testing each scenario now . and finding the perfect way in the following steps:
first step : go to standard cost worksheet
2nd step : Function -->suggest item standard cost–> filter on the item i need
3rd step : Implement standard cost changes -->filter on the item —>with entering the date
4th step : That message will tell you that a revaluation journal has been created , going there and post the the revaluation journal.
5th step : Go purchase → costing —> Run the adust cost item entries …
6th step : checking theactual cost in the item ledger entries if they are adjusted
7th step :if they are adjusted ; that means the all applied inbound entries are adjusted by the revalution journal and adjusted all the related outbound entries
8th step : here where i mean sometime wasn’t working … if it’s not adjusted …that means We must repeat all the steps mentioned above for a new date .so that the new revaluation will be applied to a new inbound entries that will adjust all the related outbound entries to it .
really without your help all , i couldn’t reach this perfect procedure , specially after Rashed summary .
As only to continue my little reserach… and know everthing about costs … can only give me a liitle summary about the follo wing batches
what is this batch → manufactring —> costing —> update unit cost when must we use this batch ?
what is this batch → purchase —> costing —> Adjust item Cost/price and what the difference of this batch with Adjust cost item entries
thank you again for you all
Rashed,
I appreciated very much your explanation on AICE and the different tables. One question perhaps you have some information on is one we are suffering through, our conversion team converted us from v.3.7 to v.5.1 and did not run the patch to prevent the average cost calc type from changing from item, variant, and location to “item”. Thus, we ran adjust cost for the first time the other day and are not dealing with $600k in negative amounts on our valuation report (and GL) despite zero quantities in one of our locations. This location had a significantly lower cost basis than the others.
We were able to change the accounting period table to reflect item, variant, and location now and I ran adjust cost on one of the affected items above. It seemed to completely reverse the incorrect adjust cost entry originally made post-conversion and zero out the amount on valuation report. Thinking this would fix all other items, I ran the adjust cost routine for all items and it did nothing (for any other items).
My question is, how does the adjust cost entry point table affect what gets adjusted in the AICE? specifically, because adjust cost creates a value entry within the original item ledger entry and not a separate item ledger entry, how do we tell NAV to go back and fix it’s previous error (adjusting with cost calc type “item” and not “item, location, variant”)? I have tried just about every combination of deselecting on the item card (cost if adjusted), the entry point table (cost is adjusted), and the ILE, but nothing will make NAV go back and read the previous adjust entries it made and readjust by location average cost.
I have a call in to my NSL, but figured I would throw the question out to anyone who could help (including yourself).
Thanks!