We use average cost for our inventory. After a certain inventory item has been depleted in units, it leaves a residual value (either positive or negative). How do I remove this residual value?
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Awesome Mahmoud. No one knows more about HITB than Mssr. AlSaadi!
I would like to shed a light more intensively on this point. I have seen this case quite often in companies having large number of inventory transactions, and been always puzzled about the precise justification. The answer is simply as Mr. Frank mentioned, "Cost Adjustment". This can get quite complicated with average costing valuation method.
In versions prior to GP 2013, the cost adjustment utility has an unreported bug which is revealed when several transfer documents are posted for a specific cost layer, when the cost adjustment hits the original receipt, all the (out) transactions after the second transfer can not be traced and never get touched by the cost adjustment causing a variance between the purchase receipt work and detail (IV10200 and IV10201) which leads to a similar case like yours. Fortunately, this is fully resolved in GP 2013 as the cost adjustment works just fine. Still, sometimes such issues are reported for specific cases with average costing.
The bottom line is, how to get this resolved ? here is what I used to do as part of what's called the "Inventory Revaluation"
As derived from the core essence that this remaining cost (either positive or negative) is a correct cost adjustment that has not been able to hit the correct cost layer, it should be manually added to HITB (which is SEE3030) . The question is, where is my precise reference? it is your purchase receipt layer (IV10200) which keeps track of the newly adjusted cost after every single cost adjustment. So basically, compare both sources (IV10200 and SEE30303) , and simply add a "manual" cost adjustment document to SEE3030 with a document type (11) and the same original receipt number. I have previously provided the SQL to compare these two tables, get it on HITB Essentials Series – Zero Quantity and Negative/Positive Cost
Please never hesitate to share any further inquiries,
It is very possible that there were cost adjustments. But.... How do I correct the situation at this point?
This can be due to cost adjustments to a receipt layer. A cost adjustment doesn't affect quantity, but it does affect value, which the HITB table contains. Can you determine if you had cost adjustments on any of the items in that account/site?
We enter our inventory use and returns on a monthly basis. The HITB report shows a zero quantity for an item but shows a dollar amount for that item. The following is a snip from our HITB report.
Hi,
Are you saying that you are still showing a balance for that item on your stock status even though you do not have any more items? By Average Cost, I'm translating this to Average Perpetual. Once all of the items have been depleted, the balance should be zero. Is yours not working that way?
Leslie
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Almas Mahfooz
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