Issue with Inventory - Valuation is Off

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My Valuation is showing me that an item has a quantity of .20, a per unit price of 17,114.70, and an inventory value of 3,422.94. The Unit price should only be .213, I don't understand how it changed.

My inventory setup is as follows:

automatic cost posting: yes

Expected cost posting to g/l: yes

Automatic cost adjustment: Always

Average cost calc type: Item

Average Cost Period: Day

Here's a link to an excel of the transactions that contributed

https://onedrive.live.com/redir?resid=DEBB0E5199CECC73!2414&authkey=!ACu4LiX2SkpuiQw&ithint=file%2cxlsx

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Community Member on at

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Here's a link to the excel document of the transactions

onedrive.live.com/redir;authkey=!ACu4LiX2SkpuiQw&ithint=file%2cxlsx

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Saurabh Shah 4,560 on at

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Hi, I have analyse and check your case, it seems that the Application entries are not properly set with the ledger entries since many of ledger lines are having the remaining qty.

this is happen sometime in case of average, I recommend to go in the Application worksheet and check the application entries. please unapply and reapply the entries from there. this will short out your issue.

Regards,

Saurabh Shah

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I un-applied and then reapplied all entries and my valuation is the same. What might be a next step?

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Saurabh Shah 4,560 on at

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Have you reapplied those in date order?

If yes. I suggest to run cost adjustment manually and check. I recently gone through the same and it was done.

Please also send the item ledger entry extract to have more details.

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When I attempted to re-apply by date it re-applied all at once. Here is a link to the ledger entries.

http://1drv.ms/1Hu4VLw

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Saurabh Shah 4,560 on at

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don't reapply it with automatic option. I suggest to apply those by ledger entry with respective entry. it seems that there are some back dated entries done.

If you look at there are some Negative entries showing in Remaining quantity and it is not applied against the positive ledger entry. I recommend since there are not much ledger entries to apply it manaully by date order.

Saurabh Shah

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Community Member on at

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I believe that what Saurabh is saying is that you should create journal lines (could be an item journal) and select the entry that you want to apply in the "Applies-to Entry" field.

For example, if you have a remaining quantity of 4 in BLUE location then create a negative adjustment of 4, in the location BLUE and then indicate the entry that you want to apply.

I had a similar problem with my inventory value with remaining quantities on my ledger entries and it worked just fine.

Either ways, be aware that posting such entries will result in changes on the balance of your inventory accounts, your COGS accounts, etc.

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Suresh Kulla 50,247 Super User 2025 Season 2 on at

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Please mark it as answered if it resolved your issue.

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Community Member on at

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My accounting contact will be back in the office this week, will try suggestions then.

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If i leave these entries alone will the inventory eventually even itself out?

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