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How to switch costing method from FIFO to Average?

Hello,

Many items that we have in NAV have costing method FIFO, i would like to change the costing method to Average. Is there any way to use somethink like mass edit of the items to do that, in order for me save time?

Thank you

Hello Petros,

Unfortunately do not exist any easy or fast tool to perform Items Costing Method changes.

Items Costing Method changes should be performed with some precaution to ensure a clear and balance information between Inventory Valuation and GL Accounts related with Items flows.

The only case that you will be able to change Item Costing Method is for Items without posted entries, otherwise if you try to change Costing Method for a Item with posted entries you will get an error message informing change isn’t allowed once there are one or more posted entries for that Item.

Based in this brief explanation, my recommendation to proceed with Items Costing Method changes are:

1.Take a list of all Items you want to set with a different Costing Method.

2.Check if those Items have or haven’t posted entries:

a) For the cases no entries exist you can change the Item Method Costing directly on the Item card (field “ Costing Method”).

b) For the cases entries exist you will have to :

- Validate if there are open docs to post related with those Items (such as: Sales, Purchases, Transfer Orders, …) and finalize them.

- Create and Post Negative Adjustments (via Item Journals) for Items with Stock (in case you use Locations, recall to enter Negative Adjustments with Location per quantity).

- Once posted the Negative Adjustments block the Items Cards (activate field “Blocked” at each Item Card) to prevent anyone to use those Items in the future.

- Create new Items Cards with the Costing Method = Average.

- Create and Post Positive Adjustments (via Item Journals) for the new Items Cards (in case you use Locations, recall to enter Positive Adjustments with Location per quantity).

Hope this can help you.

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