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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / Inventory transfer cre...
Microsoft Dynamics GP (Archived)
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Inventory transfer creates GL Cost Adjustment?

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Posted on by Tim Foster 8,515

Has anyone seen a case of an Inventory Transfer creating a Cost Adjustment GL Distribution?

A user posted a normal site-to-site Inventory transfer and a distribution was created for a cost adjustment.

The only reason I could come up with was that perhaps the user over-rode a serial or lot number (i.e. created a new one), but this is not the case in this instance.

I've looked at a lot of data in GP and SQL, but I can't locate the cause at this point.

Any ideas would be appreciated.

Thanks

Tim 

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  • Richard Whaley Profile Picture
    Richard Whaley 25,195 on at
    Re: Re: Inventory transfer creates GL Cost Adjustment?

    You said this was a transfer, however...I am thinking of lots and FIFO Perpetual....

     

    Was the transferred item lot tracked?

    Here is an interesting tid bit....

    Receive 3 pieces lotted FIFO Perpetual at $10 into inventory.  Current Cost shows at $10

    Receive 2 pieces at $5 into inventory.  GP shows $5 (last cost) as current cost.

    Transfer one of the $10 pieces by selecting the lot and the distributions show debits and credits for the $10 but the current cost is still $5.

  • Tim Foster Profile Picture
    Tim Foster 8,515 on at
    Re: Re: Inventory transfer creates GL Cost Adjustment?

    Thanks for responding. 

    FIFO Perpetual is used for all items.

    The other responses that your question generated are interesting.  I have not worked in an environment where Average costing was used.

     

  • Omar Kloub Profile Picture
    Omar Kloub 350 on at
    Re: Inventory transfer creates GL Cost Adjustment?

    Hello All...

    Yup it could create a Cost Adjustment if you are using average valuation method and the transfer is backdated  (Ripple Effect).

    More explanation :

    You already have 10 Qty with 1$ as average cost.  you issued an invoice dated 3rd of the month for example with 3 , so the average is 1$ still .

     after you post the invoice you create a transfer dated 1st of the month (before the invoice date) with 10 Qty & 2$ as cost for each.

    that means the average cost should be changed to 1.5 for the mentioned invoice.

    so Dynamics GP creates the cost adjustment journals to fix the cost for all the transactions after 1st of the month.

    Hope this clarify.

     

  • L Vail Profile Picture
    L Vail 65,271 on at
    Re: Re: Inventory transfer creates GL Cost Adjustment?

    Richard,

    Good point, wouldn't Average Perpetual create this kind of an entry?

    Leslie

  • Richard Whaley Profile Picture
    Richard Whaley 25,195 on at
    Re: Inventory transfer creates GL Cost Adjustment?

    What valuation method are you using for the item in question? 

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