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488Hi everyone,
I would appreciate some guidance from anyone who has practical experience with this scenario.
Our client currently has all inventory items configured with the Average Cost costing method. Their current setup is:
- Costing Method: Average
- Average Cost Period: Day
- Financial Year-End: 30 June
- The last three Inventory Periods of the financial year have not yet been closed.
The client is considering changing the Average Cost Period from Day to Month as part of the new financial year.
I have two questions:
- What would be the implications of changing the Average Cost Period from Day to Month while the last three Inventory Periods of the previous financial year remain open?
- Would this have any impact on historical inventory valuation or average cost calculations?
- Could it affect cost adjustments or the valuation of inventory for those still-open periods?
- Are there any risks associated with making this change before those Inventory Periods are closed?
- What would be considered the recommended approach?
- Is it advisable to first close the remaining Inventory Periods and then change the Average Cost Period?
- Alternatively, can the change safely be made on 1 July (the first day of the new financial year) while those prior Inventory Periods are still open?
- Are there any prerequisite activities (such as running Adjust Cost - Item Entries, reconciliation, etc.) that should be completed before making the change?
I've reviewed the Microsoft documentation, but I'd really appreciate hearing from anyone who has implemented this change in a live production environment and can share any lessons learned or best practices.
Thanks in advance!
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