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9,146Hi
I have at least three clients that use Average Perpetual Inventory Valuation Methods. I didn't know this issue existed until one raised the question yesterday. Their auditors asked why there was a value on the HITB report for an item that had zero quantity.
I looked into all the detail available and understand the math behind it, but what I don't understand is that GP has no way to clear this residual balance unless you go through and update all the underlying cost layers for the item to make them identical. I don't like this approach for the following reasons:
- You lose history – you no longer see what the real cost of the item was at the time.
- The volume of lines to adjust. This particular client creates about 4,500 purchase line records per month.
- The roll down effect as it calculates the cost adjustments on subsequent sales. This particular client creates about 19,500 Sales Invoice Lines per month.
I have referred to this KB article already (
https://support.microsoft.com/en-nz/help/2019828/you-unexpectedly-see-items-with-0-quantity-and-with-a-value-on-the-his)
and logged a call with MS Support. It seems that adjusting the cost layer is the only option.
Has anyone got another approach?
This seems quite a decent gap in functionality and I have expressed to Microsoft that I think there should be a "reset" type utility that clear the residual balance, put the correct entry into SEE30303 and create the appropriate GL journal so everything still ties together.
Any thoughts would be appreciated.
Cheers
Heather
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