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This post refer who have not access to the partner source. Others can go below link, get downloaded the objects and fix the costing issue if there is any.
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Introduction
This
white paper discusses common inventory costing issues and how you can correct
erroneous data after inventory costing issues have been identified.
This
document focuses on the data and the fields that typically cause problems in
the cost adjustment process. This is meant to be a guide, instead of a complete
manual. For more detailed information about costing in Microsoft Dynamics NAV,
see the Costing white papers.
The
Costing Error Detection report was
developed to help you find common costing data problems. If this report shows
that there are errors in your database, you can use the suggestions in this
document to correct the data. There are no automated fixes for repairing
costing data.
For
Microsoft Dynamics NAV 5.0 and Microsoft Dynamics NAV 2009 with service packs, use
Report 60010. For earlier releases
of Microsoft Dynamics NAV, use Report
60000.
Diagnosing
Problems in Inventory
Costing
Diagnosing
problems in inventory costing varies. If there is a problem in the Adjust Cost - Item Entries batch job, such
as an endless loop, there is most likely something wrong. Perhaps the unit cost
on the Item card does not contain
the expected value. Or, the Inventory
Valuation report may have unexpected values, such as the values are not
logical because Quantity = 0 while there is a Value <> 0 or the Value is not
expected by the user. Diagnosing these problems can be difficult due to the
number of inventory items and the complex relationships between entries in
different tables.
Costing Error Detection
Report
In
addition to using the usual methods of error detection, you can also use the Costing Error Detection report (Report 60010).
This report examines the costing data in your database to determine whether
everything is as it should be.
The
report produces a list of item ledger entries showing where errors have been
found and a description of what the error is. An error could be in associated value entries or item application entries,
but to avoid any confusion, the report lists only item ledger entries. The
description contains the error and the type of entry that the error was found
in, such as item ledger entry, item application entry, or value entry.
For
example, if the Costing Error Detection
report shows that there is more than one item application entry with
the same combination of item ledger entry number, inbound item entry number,
and outbound item entry number values, the report will generate a line that
shows the Item Ledger Entry No., Item No., Entry Type, Quantity, Remaining Quantity, and the values of
the Positive and Open fields. Under the entry, the
report will list any errors that were found in relation to that entry. In this
example, the report would generate the error, "There is more than one Item
Application Entry with the same combination of Item Ledger Entry No., Inbound Item
Entry No. and Outbound Item Entry No."
At
the end of the report, all item numbers with descriptions are listed for items
that are affected by data inconsistencies. This is useful if the report is run
for a group of items.
Before
running the report, you need to add an additional key to the Item Application Entries table (339). The key should contain the Item Ledger Entry No., Inbound Item Entry No., and Outbound Item Entry No fields.
How to use the Costing
Error Detection Report
When
you run the Costing Error Detection
report, you have the option to select the tests that you want to perform. The
first option, Basic Data Test,
performs basic tests on all entries and takes a while to run. Since this check
can reveal some very basic problems, it is a good idea to run the Basic Data Test first, correct any
errors that are shown, and then run the Basic
Data Test until all inconsistencies are no longer detected. After that, you
can run the remaining checks in the report.
The
Costing Error Detection report will
check the following data in your database.
Basic Data Test
·
No. field must not be blank in an item record
·
Entry No. field in an item ledger entry
must not be zero or negative.
·
At least one value entry must exist for every item ledger entry.
·
The values in the Positive and Open fields are correct.
·
The sign of the values in the Quantity and Remaining Quantity
fields in the item ledger entry must be the same.
·
The value in the Remaining Quantity field must not be greater than the value in the Quantity field of an item ledger entry.
·
The
value of the Valued
by Average Cost field is the same in all value entries
that are associated with the same item ledger entry.
·
The value in the Valuation Date field is the same in all value entries (except
for revaluation and rounding entries) that are associated with the same item ledger entry.
·
The Valuation Date field in value entries for positive consumption must not be 12.31.9999.
·
The
value in the Valued by Average Cost field must be False for all value entries where the item does not use costing method average.
For inbound item ledger entries of
items with costing method average, the Valued
by Average Cost field must be False for
corresponding value entries. An exception is the item ledger entry where Correction is set to True
for associated value entries; the Valued By Average Cost field must be True.
·
The
summarized Invoiced Quantity field for value entries, associated
to a completely invoiced item ledger entry, must be the same as the invoiced quantity on the item
ledger entry.
·
The Invoiced Quantity in the
value entry must equal zero if Adjustment
is set to True.
·
The Item Ledger Entry Quantity field in a value entry must equal zero
if Adjustment is set to True.
·
The Item Ledger Entry Type in the value entries must equal Entry Type in the
corresponding item ledger entry. An exception is for value entries that
represent an item charge created by a purchase. In that case, the Item Ledger Entry Type field state is Purchase regardless of Entry Type in the corresponding item ledger entry.
Item Ledger Entry
– Item Application Entry Quantity Check
·
The Quantity and Remaining Quantity values in an item ledger entry
must correspond to the quantities recorded in the item application entries.
·
Any combination of Item Ledger Entry No., Inbound Item Entry No., and Outbound Item Entry No. should occur
only once in the Item Application Entry
table.
Application
Quantity Check
·
The values in the Item Ledger Entry No. field and the Inbound Item Entry No. field are equal for positive entries in the Item Application Entry table.
·
The values in the Item Ledger Entry No. field and the Inbound Item Entry No. field are not the same for negative entries in the Item Application Entry table.
·
The
values in the Item Ledger Entry No. field and the Outbound Item Entry No. field are the same for negative
entries in the Item Application Entry table.
·
The Remaining Quantity on an
inbound (positive) item ledger entry corresponds to the sum of the Quantity fields in corresponding item application
entries.
Check for Valued by Average Cost and Cost Application (only for entries where the item uses the costing method AVERAGE)
·
For
outbound entries, if the Valued By Average Cost field in a corresponding value entry is set to True, then Cost Application on the associated item application entries must be set to
False.
·
For
outbound entries, if the Valued By Average Cost field in a corresponding value entry is set to False, then Applies-to Entry in a corresponding item ledger entry
must be filled in. Cost Application on the
associated item application entries must be set to True.
Check for Valuation
Date
·
The Valuation Date for an outbound entry that is applied to an inbound
entry must be equal to or later than the Valuation
Date of the inbound entry.
Check Expected
cost on completely invoiced entry
·
When
an item ledger entry is Completely Invoiced, the summarized value of the following fields for the attached value
entries must equal zero:
o
Cost Amount (Expected)
o
Cost Amount (Expected) (ACY)
o
Expected Cost Posted to G/L
o
Exp. Cost Posted to G/L (ACY)
Check Item Ledger. Entry No. from Value entries
·
The Item Ledger Entry Number that the value entry refers to must
be located in the Item Ledger Entry
table.
Using the results of the Costing
Error Detection report
If
the Costing Error Detection report list
errors that were found in the database, you must search for the cause for each
error. For example, a hotfix might be available in a Knowledge Base article, or
the issue might be related to a customization or to a previous upgrade.
When
the cause of the inconsistency is established, you must ensure the following:
·
All defective code is corrected
so that the data error does not occur again.
·
The existing data is corrected.
If
you have installed all of the hotfixes for your release of Microsoft Dynamics
NAV, you may have already installed a code fix for your problem. Review the
hotfix descriptions to determine if a code error that typically caused the
problem reported by the Costing Error
Detection report has been resolved in a hotfix.
After
you have established that the error will no longer be found by the report, your
next task is to correct the data. How you decide to do that will depend on the
size of the problem. The next section of this document, Data Correction, contains suggestions about how to correct these errors.
Data Correction
Steps needed for correcting
data
You
can use the following steps to correct data in your database. After you have
found a problem, you need to implement all code fixes to ensure that problems
do not recur.
1.
Create a backup of the database
and use it in a test environment. Steps 3 through 9 should be performed in the
test environment to ensure the result of the correction process.
2.
Run the Costing Error Detection report to find any issues with inventory
costing data.
3.
Perform the necessary
corrections.
4.
Repeat steps 2 and 3 until the Costing Error Detection report shows no
errors.
5.
Create a backup of the
database.
If old entries must be readjusted, follow the steps in How to readjust old entries after a code fix has been added.
6.
Run the Adjust Cost - Item Entries batch job.
7.
Review the results and allow the
customer to review the results.
8.
Implement the changes in the
live database. Make sure to allow for new transactions that have occurred after
you created the backup for the test environment.
How to readjust entries after
a code fix has been added
If
you want the Adjust Cost Item Entries batch
job to adjust old entries, you must make sure that the appropriate fields are
set so that the batch job processes them. The methods for doing this are
different for average cost items and for items with other costing methods.
Regardless
of the costing method, to bring the item into the scope of the Adjust Cost Item Entries batch job,
ensure that the Cost is Adjusted
field in the Item card is set to False,
if not, the field must be made editable and the field should not be selected.
Average
cost
items
In
the Average Cost Adjustment Entry Point table (5804), filter on the Item No. Do not select
the Cost is Adjusted field for
those periods (valuation dates) that you want to force through an additional
cost adjustment process.
If
an outbound item ledger entry is fixed applied to an inbound entry, set the Applied Entry to Adjust
field for the inbound entry to True.
You can determine if outbound entries are fixed applied to inbound entries by
checking the Applies-to Entry No.
field in the outbound item ledger entry. When this field is filled in, the entry is fixed applied.
Items
with costing methods other than average
For
any item where the applied outbound entries need to be readjusted, set the Applied Entry to Adjust field for inbound item ledger entries to True.
When
you run the adjustment, the related entries will be adjusted again.
How to correct an incorrect
setting of the Valued by Average Cost field in value entry
The
following guidelines can be used to evaluate if the Valued by Average Cost field in the value entry is set to True or False:
·
The
value in the Valued by Average Cost field must be False for all value entries if the item does not use the costing method average.
·
The value of the Valued by Average Cost field must be
the same in all value entries that are associated with the same item ledger entry.
General rule:
·
If the Valued Quantity field in the value entry is positive (inbound entry),
then the field must be False. An exception
is if the parent item ledger entry, the Correction
field is set to True and the item uses the costing method
average, then the Valued by Average Cost
state is True
·
If the Valued Quantity field in the value entry is negative (outbound entry),
then the field must be True, unless
an outbound entry is fixed applied to an inbound entry. If the parent item ledger entry indicates
that there is an entry number in the Applies-to Entry No. field, the outbound
entry is fixed applied to that entry. In that case, the Valued by Average Cost field must be False.
How to correct invoiced quantities
The summarized invoiced quantity of value entries, associated to a completely invoiced item ledger entry, must be the
same as the invoiced quantity on the item ledger entry.
When item ledger entry is completely invoiced, the invoiced quantity must equal Quantity.
Item ledger entry
Entry No.
|
Item No.
|
Posting Date
|
Entry Type
|
Document Type
|
Quantity
|
Invoiced
Quantity
|
Completely
Invoiced
|
100
|
A
|
01.21.11
|
Sale
|
Sales Shipment
|
-5
|
-5
|
Yes
|
Associated value entries
Entry No.
|
Item No.
|
Posting Date
|
Item Ledger
Entry Type
|
Entry Type
|
Item Ledger
Entry No.
|
Item Ledger
Entry Quantity
|
Invoiced
Quantity
|
Cost Amount
(Actual)
|
Cost Amount
(Expected))
|
150
|
A
|
01.21.11
|
Sale
|
Direct Cost
|
100
|
-5
|
0
|
0
|
-100
|
160
|
A
|
01.25.11
|
Sale
|
Direct Cost
|
100
|
0
|
-5
|
-100
|
100
|
-5
|
If
there are additional value entries that make up an incorrect sum of Invoiced Quantity, the Invoiced Quantity needs to be cleared in one or more value entries.
The choice of which value entry, Invoiced
Quantity field, that needs to be cleared, needs to be considered in
accordance with design. For example, a value entry stating Expected Cost is True or Adjustment is True must only state Invoiced Quantity = 0.
How to correct the Cost Application field in
Item Application Entry in relation to valued by average cost in value entries
The
following guidelines should be used for issues with the value in the Cost Application field.
If
the outbound item ledger entry has attached value entries with the Valued by Average Cost field set to True, then the Cost Application field on the associated item
application entries must be False.
For
inbound item ledger entries, the associated item application
entry, the Cost Application field must be True.
How to correct valuation
dates
The
following guidelines should be used for correcting valuation dates.
The
Valuation Date in value entries associated to an outbound item ledger entry that is applied to an inbound item ledger
entry, must be equal to or later than the Valuation Date of value entries associated
to the inbound item ledger entry.
The
assignment of valuation dates can be found in the Inventory Costing training material.
How to correct incorrect Item
Application Entries
Use
the following guidelines to identify and correct erroneous item application entries:
·
For a positive item ledger entry, the sum of the Quantities
of all related item application entries (filter on Item Ledger Entry No.) must be its Quantity.
·
For a negative item ledger entry, the sum of the Quantities
of all related item application entries (filter on Item Ledger Entry No.) must be its Quantity minus Remaining Quantity.
·
The sign of the Quantity
of an item
ledger entry and the sign
of the Quantity of all related item application entries (filter on Item
Ledger Entry No.) must be equal.
·
The Remaining
Quantity of a positive item ledger entry must be equal to the sum of the quantities of all item application entries with the same Inbound Item Entry No. (filter on Inbound Item Entry No.).
How to correct item
application entries with the same Item Ledger Entry No., Inbound Item Entry No.,
and Outbound Item Entry No.
If
more than one item application entry has the same Item Ledger Entry No., Inbound Item Entry No., and Outbound Item Entry No., the cost adjustment may not run
correctly.
To
correct the item application entries:
1.
Combine these item application entries into one entry by summing up the Quantity. Ensure that the quantities are in correspondence to the item
ledger entry that it represents and in accordance to what is mentioned in this
document.
2.
After you have updated one of
the item application entries so that it holds all the summed information, you
can delete the other item application entries.
How
to correct expected cost <> 0 on completely invoiced entries
For an item ledger entry where
Completely Invoiced is to set to True, the summarized Cost Amount (Expected) must equal zero.
The following is an
example where a purchase order has been recorded as received; item ledger entry,
and the first value entry with a recognized Cost Amount (Expected) has been created. In the next
step, the goods have been partially invoiced where the second value entry is
created. Two days later, the received goods are completely invoiced.
Item ledger entry
Entry No.
|
Posting Date
|
Entry Type
|
Document Type
|
Document No.
|
Item No.
|
Cost Amount
(Actual)
|
Cost Amount
(Expected))
|
Quantity
|
Invoiced
Quantity
|
Completely
Invoiced
|
329
|
05.03.11
|
Purchase
|
Purchase Receipt
|
107036
|
A
|
100
|
0
|
5
|
5
|
Yes
|
Associated value
entries
Entry No.
|
Posting Date
|
Item Ledger
Entry Type
|
Valuation Date
|
Entry Type
|
Document No.
|
Document Type
|
Cost Amount (Actual)
|
Cost Amount (Expected)
|
Item Ledger Entry Quantity
|
Invoiced Quantity
|
514
|
05.03.11
|
Purchase
|
05.03.11
|
Direct Cost
|
107036
|
Purchase Receipt
|
0
|
100
|
5
|
0
|
515
|
05.05.11
|
Purchase
|
05.03.11
|
Direct Cost
|
108033
|
Purchase Invoice
|
60
|
-60
|
0
|
3
|
516
|
05.07.11
|
Purchase
|
05.03.11
|
Direct Cost
|
108034
|
Purchase Invoice
|
40
|
-40
|
0
|
2
|
0
|
When the invoice is
recorded, the earlier recognized Cost
Amount (Expected) is reversed. When the item ledger entry is Completely Invoiced, the summarized Cost
Amount (Expected) equals zero.
The same applies to the Cost Amount (Expected) (ACY), Expected Cost Posted to G/L, and Exp. Cost Posted to G/L
(ACY) fields if additional reporting currency or expected cost posting is
used. The correction process in these situations is to clear the Cost Amount (Expected) in one
record that causes the summarized Cost
Amount (Expected) not to equal zero.
If Expected Cost Posting is used, ensure if the incorrect Cost Amount (Expected) is also
recorded to the general ledger. If it is, then it has to be reversed (cleared).
The Value Entry No., Item No., and Posting Date need to be entered into the Post Inventory Cost to G/L table (5811).
The Post Inventory Cost to G/L batch job will
then process the value entry and post the difference between the Cost Amount (Expected) (now
cleared) and the Expected Cost Posted to G/L in the value entry to the general ledger.
Basic Design of Inventory Costing Data
Inventory costing tables and how they are created
Item
Ledger Entry table (32) and Value Entry table (5802)
When
an inventory transaction is posted in Microsoft Dynamics NAV, an item ledger entry is generated to record the change in
quantity. At the same time, one or more value entries are created to record the
value of the transaction. If the transaction has not yet been invoiced, the
expected cost of the transaction is recorded in the value entry's Cost Amount (Expected) field.
The Expected Cost field is also set to True,
the Valued Quantity field is filled in with the quantity, and the Invoiced Quantity field is blank. When the transaction has been invoiced, a
new value entry is created by using the cost in the Cost Amount (Actual) field and the quantity in both
the Valued Quantity and the Invoiced
Quantity fields. The Cost Amount (Actual) field is
calculated by multiplying the Invoiced
Quantity by the Cost Per Unit. The earlier recorded Cost Amount (Expected) is
reversed.
The
purpose of the Adjust Cost - Item
Entries batch job is to push the costs of the inbound entries forward to
the applied outbound entries. If a cost-changing event has occurred, such as an
item charge being invoiced for an inbound entry like a purchase, the Adjust Cost - Item Entries batch job
recognizes the new cost of the inbound entry and forwards the cost to any
outbound entries that are applied to the inbound entry. The Adjust Cost - Item Entries batch job
calculates the average cost for the item and updates the Unit Cost on the Item
card accordingly.
The
Adjust Cost - Item Entries batch job
adjusts only those value entries that have not yet been adjusted. It determines
which entries these are by using the Applied
Entry to Adjust field on the item
ledger entry. In general, this field is set to True on an item ledger entry when another entry has been applied to
it. For example, the Applied Entry to Adjust field is set
to True on a positive purchase entry
when a negative sale entry is applied to it. As discussed in the next sections,
it is also possible for this field on a negative entry to be set to True.
Note,
the Applied Entry to Adjust field is not set to True for entries for items with costing method
average unless a fixed application is used. How average cost items are handled is
generally different from the other costing methods, and therefore, in the
following sections there will be separate reference to this costing method.
Item Application Entry
table (339)
When
an item ledger entry is created to represent an increase of goods to inventory,
such as a positive adjustment, a purchase, or a manufacturing output, an entry is
also created in the Item Application Entry table. This resembles the following example entry.
Entry No.
|
Item Ledger Entry No.
|
Inbound Item Entry No.
|
Outbound Item Entry No.
|
Quantity
|
Posting Date
|
732
|
740
|
740
|
0
|
80
|
01.21.11
|
This
example entry does not show all of the fields in this table. The Item Ledger Entry No. shows that this entry was created
for the transaction corresponding to Item
Ledger Entry number 740. The Inbound
Item Entry No. field contains
the same item ledger entry, 740, which shows that this was
an inventory increase. The Outbound Item Entry No. of 0 indicates
that there were no earlier outbound entries associated with this transaction
when it was made.
When
a transaction is made that subtracts a quantity of goods from inventory, such
as a negative adjustment, sale, or consumption, and there is a positive
quantity to which the negative quantity can be applied, an item application entry
is created that resembles the following example.
Entry No.
|
Item Ledger Entry No.
|
Inbound Item Entry
No.
|
Outbound Item Entry
No.
|
Quantity
|
Posting Date
|
733
|
741
|
740
|
741
|
-25
|
01.21.11
|
The
Item Ledger Entry No. field shows that this entry was
created by the transaction for item ledger entry number 741. This entry number
also appears as the Outbound Item Entry No., which reveals
that this entry is an inventory decrease, because it is the same entry number
as the Item Ledger Entry No. The Inbound Item Entry No. field shows that the inventory increase to which this inventory
decrease was applied to entry 740. The negative quantity confirms that this is an
inventory decrease. When this entry is created, the Remaining Quantity in
the inbound item ledger entry is reduced by the quantity in the Quantity field. The Remaining Quantity in the outbound item ledger entry is also adjusted to show
only the unapplied quantity.
If
an outbound entry is applied to more than one inbound entry, then several
outbound item application entries with different inbound item entry numbers are
created for each applied entry.
If
an outbound entry cannot be applied, then an item application entry is not created. The corresponding item application entry is created only when an inbound entry has been posted to
which the outbound entry can be applied.
Transfers
and fixed applications specifications
Transfers
Transfers
from location to location have two components —shipping
from the original location and receiving in the new location. These two
components create four item ledger entries:
·
A
negative adjustment to the original location.
·
A
positive adjustment to the in-transit location.
·
A
negative adjustment to the in-transit location.
·
A
positive adjustment to the new location.
When
the transfer shipment is posted, the first two entries are created. These
entries are applied to each other in the Item
Application Entry table. When the transfer receipt to the new location is
posted, the last two item ledger entries and value entries are created.
The item application entries for these transactions resemble those in the
following example.
Example
The
inventory manager at CRONUS International Ltd. creates a positive adjustment
for 100 PCS of item 70000 in the Blue location. This creates item ledger entry
360. The manager then creates a transfer moving 50 PCS to the Red location. The
shipment and receipt result in the following item ledger entries:
·
Entry
361, with a negative transfer of -50 PCS from the Blue location.
·
Entry
362, with a positive transfer of 50 PCS to the Out. Log. location.
·
Entry
363, with a negative transfer of -50 PCS from the Out. Log. location.
·
Entry
364, with a positive transfer of 50 PCS to the Red location.
The
item application entries appear as follows.
Entry No.
|
Item Ledger Entry No.
|
Inbound Item Entry No.
|
Outbound Item Entry No.
|
Quantity
|
Posting Date
|
Transferred-From Entry No.
|
338
|
360
|
360
|
0
|
100
|
01.01.11
|
|
339
|
361
|
360
|
361
|
-50
|
01.02.11
|
|
340
|
362
|
362
|
361
|
50
|
01.02.11
|
360
|
341
|
363
|
362
|
363
|
-50
|
01.03.11
|
|
342
|
364
|
364
|
363
|
50
|
01.03.11
|
362
|
As
shown in this example, the positive transfer item application entries differs
from typical positive item application entries because there is an associated
outbound item entry number and there is a Transferred-From Entry No. that marks these
entries as transfers from a different location. The adjustment uses these
entries to push the cost from the original inbound entry 360 to the transfer
shipment entry 361. This cost is then pushed to the inbound in-transit entry
362, to the outbound in-transit entry 363, and finally to the inbound transfer
receipt entry 364.
Transfers
of average-cost items differ from the entries shown above, in that the Transferred-From Entry No. field on new
item application entries is not filled in.
Fixed
applications
Fixed
applications are transactions where the user specifies, at the time of making
the transaction, that the transaction must be applied to or from a specific
entry. A common type of fixed application is a sales credit memo, which is
applied to the original sale to ensure that the correct inventory value is put
back into inventory as when it left inventory.
Example
The
inventory manager creates a positive adjustment for 100 PCS of item 70062. This
creates item ledger entry 365. A salesperson posts a sales order for 50 PCS.
This creates item ledger entry 366. Two days later, the salesperson posts a
return order for 25 PCS and specifies entry 366 as the Applies-From Entry No. in the return order line. The Item Ledger Entry No. for the return order is 367. The item application
entries appear as follows.
Entry No.
|
Item Ledger Entry No.
|
Inbound Item Entry
No.
|
Outbound Item Entry
No.
|
Quantity
|
Posting Date
|
343
|
365
|
365
|
0
|
100
|
01.01.11
|
344
|
366
|
365
|
366
|
-50
|
01.02.11
|
345
|
367
|
367
|
366
|
25
|
01.04.11
|
The
item application entry for the return order shows that it is fixed applied by
specifying an Outbound Item Entry Number. This is
used in the Adjust Cost - Item Entries batch
job to forward the cost from the sales order to the return order.
Average
cost
The
calculation of the adjusted cost for items with the costing method average is
significantly different from that of items with other costing methods, so that
the entries are created with different fields selected.
Avg.
Cost Adjmt. Entry Point table (5804)
The
Avg. Cost Adjmt. Entry Point table is
used to store all items, regardless of the costing method, to support the Average Cost Calc. Overview window, which is accessed by
drill down in the Unit Cost field in the Item card. The Average Cost Calc. Overview window provides
an overview of all entries that were used to calculate the average unit cost
per average cost period. The overview is most useful for items with costing method
average but it is available for all items.
For
items with the costing method average, the Adjust
Cost - Item Entries batch job uses the entries in this table to find which
items to adjust and for which valuation dates.
In
general, entries are created in this table when an inventoriable value entry is posted in codeunit 22. When the Adjust Cost - Item Entries batch job has processed the average cost
period (valuation date) the Cost is Adjusted
field is set to True.
Table
5804 has five fields: Item No., Variant Code, Location Code, Valuation Date, and Cost is Adjusted. If the Average Cost Calc. Type on the Inventory Setup is Item, then the Item No. and Valuation Date fields are the only fields used.
If the Average Cost Calc. Type is Item & Location & Variant, then all fields are used.
The
Valuation Date reflects the Average
Cost Period. If set to Day,
the Valuation Date in the Avg. Cost Adjmt. Entry point table reflects the
valuation dates where value entries exists. If Average Cost Period is, for example, Month, the Valuation Date states the last date in a month for which value entries
exists.
Valued By Average Cost field in the Value Entry
table (5802)
The Valued by Average Cost field in the Value Entry table is one
of the most important fields used when calculating average costs for items with
the costing method average. The purpose of this field
is to identify entries for which costs should be calculated using the average
cost of the item valid on a certain valuation date. Some of the rules regarding
how this field is set are as follows:
·
The
Valued by Average Cost field must never be set to True for items with a costing method other than average.
·
The
Valued by Average Cost field must always be set to True for outbound, direct cost value entries of average cost items except for a fixed application. However, the value entry of an item charge that
is associated with an outbound item ledger entry is not Valued By Average Cost.
·
If
there is more than one value entry for the same item ledger entry, the Valued by Average Cost of all these value entries where Inventoriable is set to True must be the same.
·
Fixed applied outbound entries
are not valued by the average cost because their costs are transferred directly
from the applied inbound entry to the outbound entry. You can identify a fixed
applied outbound item ledger entry by checking whether the entry has a value in the Applies-to Entry field. If this
field is filled in for an outbound entry, it holds the item ledger entry number
of the inbound entry. This means that Valued by Average Cost of fixed applied outbound entries must be False; for all other outbound entries Valued by Average Cost must be True.
·
Valued by Average Cost of inbound entries must be False.
The exception is if the parent item ledger entry Correction is set to True, then Valued by Average Cost is True.
·
Valued by Average Cost for positive manufacturing output entries must always be False.
·
For
outbound entries, there is a direct relation between the Valued by Average Cost field in the Value Entry table and the Cost Application field in the Item Application Entry table. If Valued by Average Cost
of an outbound value entry is True, Cost Application of the associated item application entry must be False. If Valued by Average Cost is False for an outbound value entry, Cost Application must be True. For inbound entries, Cost Application must be True.
·
An
exception to these rules is that Valued
by Average Cost should not be set to value entries that were generated
during an upgrade. You can identify these entries by
looking at the Valuation Date. The
upgrade tool does not fill in the Valuation
Date. If a transaction is posted in Microsoft
Dynamics NAV version 3 or greater, this creates a value entry in the Valuation Date field.
Valuation date
The
valuation date in the value entries
is important in calculating average costs. The average cost of an entry is
dependent upon the valuation date with which the average cost is calculated.
The following are some general rules for setting the valuation date:
·
If the costs of an entry depend
on the costs of another entry, the valuation date of the dependent entry must
always be equal to or later than the valuation date of the original entry. For
example, the valuation date of an outbound entry must always be equal to or later
than the date of the applied inbound entry. The valuation date of an inbound
entry where the costs are retrieved from an outbound entry, such as a transfer,
must always be equal to or later than the valuation date of the outbound entry.
·
If quantity on inventory is
less than zero after posting an inventory decrease, then the valuation date is
first set to the posting date of the inventory decrease. According to the rules
described above, this date may be changed later when an inventory increase is
applied.
For
more information about the assignment of valuation dates, see the Inventory
Costing training material.
Additional Resources
For
more information about inventory costing, see:
·
Inventory Costing training
material (2009) and Manufacturing Costing training material (4.0), both found
at:
https://mbs.microsoft.com/partnersource/deployment/documentation/userguides/TrainingManaulOverviewNAV2009.htm
https://mbs.microsoft.com/partnersource/deployment/documentation/userguides/TrainingManaulOverviewNAV2009.htm
·
Costing White paper (5.0):
https://mbs.microsoft.com/partnersource/documentation/whitepapers/msdynav50_inventorycosting_wp.htm
https://mbs.microsoft.com/partnersource/documentation/whitepapers/msdynav50_inventorycosting_wp.htm
