Skip to main content

Notifications

Announcements

No record found.

Microsoft Dynamics NAV forum
Suggested answer

Wrong unit cost for negative items

Posted on by 10

I am having a problem with inventory items unit cost when balances turn negative.

some items cost per unit are wrongly displayed (i.e. and item normal cost is 7$ and suddenly the number changes to to a very high cost for no reason)

I have noticed that generally occurs after running cost adjustment job while item was negative.

Negative balances are addressed once we make stock take which occurs 2  times a year.

Is there a way to stop calculating wrong unit cost .

Note i am using FIFO and LSNAV 2018

  • Suggested answer
    TWBlaisdell Profile Picture
    TWBlaisdell on at
    RE: Wrong unit cost for negative items

    Hello,

    Thank you for posting on the Microsoft Dynamics NAV Forum.

    There is no way to directly control whether Adjust Cost Item Entries runs.  With that stated, there are key Boolean flags in the Costing related Tables to manage whether an Item is adjusted. However, these are managed in the code and not directly manipulated by a user.

    For example:

    1) Table 32 - Item Ledger Entries - Applied Entry to Adjust flag is set on Inbound (Positive = True) Entries to indicate that Applied Outbound Entries have been posted and applied to the entry and need to be adjusted.

    2) Table 339 - Outbound is Updated flag is set to TRUE when applied Outbound Entries (Negative Quantity transaction) have been updated and adjusted.

    3) Table 5804 - Cost is Adjusted is managed for the Item/Location/Inbound entry period that was added. If cost is Adjusted for a period, the system can bypass that period for adjustment. The Table 5804 Cost is Adjusted flag controls whether the Item Card shows Cost is Adjusted = TRUE or FALSE. If all Table 5804 Records for an Item show Cost is Adjusted = TRUE, then the Item Card will show Cost is Adjust = TRUE and Adjust Cost Item Entries will not run against the Item. 

    4) Table 5896 - Cost is Adjusted flag for Production and Assembly Orders.  By completing Adjust Cost Item Entries against Finished Production Orders, the system can fully update a Production Order cost rollup and set the flag to Cost is Adjusted to TRUE so that the Production Order no longer needs to updated and can be bypassed.

    All of these added Boolean flags and identifiers in the data help reduce the Adjust Cost Item Entries processing time.  

    The detailed design features for costing are covered beginning at the following link: https://docs.microsoft.com/en-us/dynamics-nav-app/design-details-inventory-costing

    It is definitely a challenge that the Items are being driven negative in quantity for such a long duration of possibly 6 months at a time. Without Inbound Quantity to base a cost calculation, the system does not have correct data to base the cost.  The delays in actually completing a physical quantity update to twice per year limits the effectiveness of the cost adjustment.  The system cannot adjust cost correctly without having Inbound Quantity to apply the Outbound Quantity and calculate a correct cost. The Adjust Cost Item Entries is only effective when Quantity is 0 or greater.  Once Inbound Quantity is processed to provide the application of open Outbound, the Adjust Cost Item Entries will correct the cost. However, until that is completed, the Adjust Cost Item Entries cannot function as designed. 

    Has the company considered using Standard Costing Method?   Then, you have a predefined cost for the period without having inventory.  To use FIFO or any actual cost for Costing Method cannot be effective when inventory quantity is driven negative and remains negative for such a long duration. 

    Thank you.

    Best Regards,

    Tom

Under review

Thank you for your reply! To ensure a great experience for everyone, your content is awaiting approval by our Community Managers. Please check back later.

Helpful resources

Quick Links

Anton Venter – Community Spotlight

Kudos to our October Community Star of the month!

Announcing Our 2024 Season 2 Super Users!

A new season of Super Users has arrived, and we are so grateful for the daily…

Dynamics 365 Community Newsletter - September 2024

Check out the latest community news

Leaderboard

#1
André Arnaud de Calavon Profile Picture

André Arnaud de Cal... 290,564 Super User 2024 Season 2

#2
Martin Dráb Profile Picture

Martin Dráb 228,651 Most Valuable Professional

#3
nmaenpaa Profile Picture

nmaenpaa 101,148

Leaderboard

Featured topics

Product updates

Dynamics 365 release plans