Firstly, thanks to Steven Weaver from XONITEK Systems (UK) Ltd. I did exactly as you said. I finished the production orders and indeed the Revaluation Journal displayed the correct quantity. I have one other problem now regarding this. My client told me they cannot finish production orders in order to revaluate their stock as they have multiple production orders running continuously. My question then is: Is it correct to revaluate stock if you are unable finish all production orders related to that item. The reason I ask this is because I discovered that Navision will post an adjustment to the G/L with a value that is calculated as follows: Price Difference (New Unit Cost - Old Unit Cost) * Revaluation Journal Quantity. The end result is that the G/L is adjusted by a figure that is incorrect therefore the value of the stock is wrong. Can anyone help me on this. It is very urgent as my client cannot post anything. DavidT
Hi David Thanks for the kind mention [:I]. I think a cost accountant would answer this best, but if the production order is open, with the potential of variable overhaeds to be consumed, and depending upon the set-up, arguably you cannot revalue the manufactured item as you do not know the true cost. You could of course argue that the costs should be closed as the output is recorded (and you have recorded all of your consumption for the item). Navision may have taken this approach as the safest and easiest approach - but I cannot really comment. You could develop the revaluation to revalue given set circumstances (and hence your post here I presume) but you would need to be VERY VERY careful! [:D]
Thanks Steven for your speedy response.[:)] I am currently hunting down financial consultants who can give me more insight into your response. I am hesitant to change anything until I am confident that there will not be a “ripple” effect through the system. Regards DavidT