COST ADJUSTMENT TO POSITVE ADJUSTMENT ENTRIES

(1) Share

Report

Posted on by DynamicsBC

Hi community,

I have a scenario, In which we posted opening balances by using item journal. but client didn't provided unit cost at the time of opening balances. And later they realised that these items are showing 100% profit that is not fine. For example on Jan 2024 the posted positive adjustment of an item with 10 quantity and also sold in Februry. On sale this item is showing 100% profit now after a year they want to adjust some cost to this item. I tried to reverse the opening entry but business central restrict me with error (unsuffiecient quantity)

Is there any solution to post cost adjustment against items which are posted using positive adjustments to get actual profit.

Thanks in advance

Categories:

Dynamics 365 Business Central

Dynamics 365 Business Central migration

I have the same question (0)

All responses (4)

Answers (1)

Suggested answer

PRao 274 on at

Like (0)

Report

COST ADJUSTMENT TO POSITVE ADJUSTMENT ENTRIES

I agree with solution provided by others.
Positive adjustment entries(opening ) are already consumed , there is no other option for reversal or may be not right way.

Correct way is to update the cost using Item Revaluation journal against the previous entry.
Make sure before executing the item Revaluation journal Item Adjust cost already run.

Thanks,
PRao

Was this reply helpful? Yes No
Suggested answer

Nimsara Jayathilaka. 71 on at

Like (2)

Report

COST ADJUSTMENT TO POSITVE ADJUSTMENT ENTRIES

If the original balances were posted to items with positive adjustments not including unit cost, Business Central will not know the proper item costs and thus could produce incorrect profit measurements on sales. Since you are not able to reverse the entries since you have sold from the quantity you have performed subsequent sales, you can instead the next best thing, adjust costs.

The Inventory Cost Adjustment page in Business Central allows you to adjust the item cost against quantifying the remaining inventory on hand and not the cost of the quantity. Doing cost adjustments will produce a change in unit cost for the item, and therefore fix the profit calculations going forward. As cost adjustments let you batch and track items, cost adjustments can easily be done as post opening quantifying balance.

When you do not have quantity available to reverse, I suggest don't reverse your original entries and only be concerned with cost adjustments and ensure your cost base is correct. It is always best practice to first test and trial in 'sandbox' mode before implementation in production to ensure proper accounting and inventory valuation.

Thanks

Nimsara

1 people found this reply helpful.

Was this reply helpful? Yes No
Suggested answer

Chavda Dharmendra 628 on at

Like (3)

Report

COST ADJUSTMENT TO POSITVE ADJUSTMENT ENTRIES

Yes Correct @Pallavi.

After then run Adjust Cost – Item Entries report for adjust in all historical data.

Thanks

Dharmendra Chavda

1 people found this reply helpful.

Was this reply helpful? Yes No
Verified answer

Pallavi Phade 240 on at

Like (1)

Report

COST ADJUSTMENT TO POSITVE ADJUSTMENT ENTRIES

Namaste

Since your positivie adjustment entries are already consumed , there is no option for reversal . Yes we can revalue the cost using Item Revalution journal .

Tips

Adjust all the cost adjustments before running this revaluation journal

Steps

Go to Item revaluation journal .

Run the report - Calculate inventory Value . Specify the date . This option is to get valuation on that date . In your case its zero

You will get all items on that date .Add unit cost in revalued column which need to be revalued.

If you feel valuation is correct after preview posting , Proceed with posting.

It will add cost to your item line by line.

In value entry , with Entry type as Revaluation it will get posted

If you feel its helpful , please verify the answer

Regards

Pallavi Phade

1 people found this reply helpful.

Was this reply helpful? Yes No