What is the Use of Adjust Cost - Item Entries

Hi All,

I have an query regarding inventory costing, earlier my company they use automatic costing tick , so at that time system automatically updated cost the g/l account.

but due to perfromance issue they remove the tick from automatic costing and they manully run the job (Post Inventory Cost to G/L) . due to which there is difference in my COGS and Sale account.

Latter on find out that our costing price is not going updated , so i run this job (adjust cost - item entries), after this i go through its make huge difference in COGS and stock account. my COGS is increase and stock has been decrease.

i just want to know whether i have to run both the jobs adjust cost - item entries and post inventory cost to G/L. or only one job post inventory cost to G/L.



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.

Hi Amol,

Can adjust Cost - item entries job run for the FIFO method, because here iam using the FiFO method.



Yes you can do that …

BTW - Even with the automatic cost adjustment turned on, you still need to run this process for accurate costing.

Hello Amol, Thanks for your excellent explanation about ACIE and its relations. I really learn lots for your post.

Welcome …

Thanks so much Amol. You are a life saver. Your tips worked. [:)]

Hi everybody,

I have understood how does the Adjust cost - item entries : impacting item cost after a movement like a sale for example.

However I am now in front of a problem :

I have shipped an item for 50£ worth (COG),

Then I have run the Adjust cost - Item Entrie, which undervalue the COG by - 4£

Then I have created a sale credit (copying the sale invoice) for 50£

At the end of this operation, even if I run Adjust cost, my balance is - 4£ (in item value entries).

How can I make Nav applying the adjust cost for Sale Credit as well ? If I have to unticked boxes, it is going to take ages to check everything. I am sure there is a good solution !

Thanks for your help!


Could you please explain it in more detail?


How can we uncheck the ‘cost is adjusted’ when the method is FIFO?



You cannot as the field is non-editable.

But the field will [automatically] be un-checked by Dynamics NAV when you do some (any) inventory-posting on that item.