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Why is Unit Cost on Item Card not the same as Unit Cost set during revaluation?

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Posted on by 31

The Unit Cost of an item with Costing Method "Average" was 74.84 (according to the field "Unit Cost" on the Item Card and in the Item List).

In the Revaluation Journal I set the Unit Cost to 84.78. The value entries for the revaluation have been created:

pastedimage1659977391382v1.png

I ran the batch job "Adjust Cost - Item Entries" before and after revaluation.

But now the field "Unit Cost" on the Item Card and in the Item List shows 54.37 instead of 84.78. Why?

Almost all value entries created during revaluation contain the difference to 84.78, as I would have expected. However, a value entry with "-17732.19" was added for the last item entry. Is this the reason for the discrepancy? Did I make a mistake?

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  • Inge M. Bruvik Profile Picture
    Inge M. Bruvik 32,714 Super User on at
    RE: Why is Unit Cost on Item Card not the same as Unit Cost set during revaluation?

    You are welcome, i am happy to help.

    Please mark the question as answered if you found the assistance helpful.

  • Thorsten Kern Profile Picture
    Thorsten Kern 31 on at
    RE: Why is Unit Cost on Item Card not the same as Unit Cost set during revaluation?

    Thank you for the time invested!

  • Inge M. Bruvik Profile Picture
    Inge M. Bruvik 32,714 Super User on at
    RE: Why is Unit Cost on Item Card not the same as Unit Cost set during revaluation?

    I do not have a good explanation for that.

    But i would try to copy my environment to a sandbox and try to do a new revaluation for that transaction and see if that corrects the issue.

    If it does you can replicate that procedure in your prod enviornment.

  • Thorsten Kern Profile Picture
    Thorsten Kern 31 on at
    RE: Why is Unit Cost on Item Card not the same as Unit Cost set during revaluation?

    In my original post I wrote that a value entry with "-17732.19" was added for the last item ledger entry. These are all value entries for that item ledger entry:

    pastedimage1660079244684v2.png

    The sum is 8125.71.

    Why did the revaluations (both with 84.78) lead to such value entries?

  • Inge M. Bruvik Profile Picture
    Inge M. Bruvik 32,714 Super User on at
    RE: Why is Unit Cost on Item Card not the same as Unit Cost set during revaluation?

    If you filter your Item ledger Entries on those who have a reaming qty > 0 then you have narrowed down the transactions you need to investigate. The average cost. is the average cost of all value entries for those ledger entries with a remaining qty.

    Export them to Excel and take cost / remaing qty and you should see the average cost for every entry.

    So what i find suspicious is this entry

    pastedimage1660075043637v1.png

    Qty is 1 but the cost is  8125,71 for that single unit.

    Please check the value entries for that record.

    Also the purchase from 7th of july qty 188 should be looked at.

  • Thorsten Kern Profile Picture
    Thorsten Kern 31 on at
    RE: Why is Unit Cost on Item Card not the same as Unit Cost set during revaluation?

    I checked the Inventory Setup page:

    Average Cost Calc. Type: Item & Location & Variant

    Average Cost Period: Day

  • Thorsten Kern Profile Picture
    Thorsten Kern 31 on at
    RE: Why is Unit Cost on Item Card not the same as Unit Cost set during revaluation?

    The field "Inventory" shows 619.

    These Item Ledger Entries show up when I drill down:

    pastedimage1660052116237v1.png

  • Alfredo_Iorio Profile Picture
    Alfredo_Iorio 1,260 on at
    RE: Why is Unit Cost on Item Card not the same as Unit Cost set during revaluation?

    The problem might be with the average costing method calculation in the inventory setup.

    When you run an item reveal journal you move a balance between inventory and inventory adjustment account

    The last entry of -17k is the contra entry of your journal and it does not affect the item valuation.

    When you revaluate an item with a revaluation journal, you only reevaluate certain entries. The average cost calculation will average everything.

    Check the Inventory Setup page and see if you have average costing calculation type setup as Item only or Item, location and variant. Also the Average Cost period field and see if it's set up as day, month or accounting period.

    Depending on the setup, your average costs might include entries that you did not reevaluate with the journal.

  • Inge M. Bruvik Profile Picture
    Inge M. Bruvik 32,714 Super User on at
    RE: Why is Unit Cost on Item Card not the same as Unit Cost set during revaluation?

    What does your current inventory qty shows?

    And can you show the entries you get when you drill down on your inventory qty?

  • Thorsten Kern Profile Picture
    Thorsten Kern 31 on at
    RE: Why is Unit Cost on Item Card not the same as Unit Cost set during revaluation?

    I know the page "Average Cost Calc. Overview". Unfortunately, the page didn't help me.

    pastedimage1659992326962v1.png

    Can you see why the unit cost was not set correctly?

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