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Cost is a "Wash"?

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Posted on by john.ellis

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Hi:

In a test company I tested the posting of a sales invoice, and pasted below are the resulting General Ledger Entries.

5000 is Cost of Goods Sold, while 1200 is Inventory. FIFO is the inventory valuation method.

It would appear that posting both increased and decreased Cost of Goods Sold and Inventory, as if the transaction had been a "wash" (i.e. no effect).

Why?

Thanks!

John

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Dynamics 365 Business Central

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IB-29041624-0 1,191 Moderator on at

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I think you need to check that the inventory posting group and your general posting setup is correctly set up.

My best guess is that your general posting setup is incorrect.

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john.ellis 3,530 on at

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Well, any other hints are welcome. I have looked all over these setups and troubleshooted to no avail.

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MahGah 15,613 on at

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Hi

As Inge suggested please check two places

1) General Posting Setup and look for COGS and COGS interim and see if you have the same account number there.

2) Inventory Posting Setup and see Inventory Account and Inventory Account Interim and see if you have the same account number there.

Then see the below chart for transactions. as you can see at the time of Shipping BC Debit the COGS Interim and at the time of Invoicing it Credit Interim and Debit actual COGS. The reverse is for Inventory and Inventory interim. if you ship and invoice at the same time it may looks like the wash. Can you try to ship and see transactions then invoice and see the transactions?

I hope this help

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john.ellis 3,530 on at

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Thanks! I don't have Interim accounts in place.

I conducted additional testing. This "issue" does not occur, unless I'm selling a lot numbered item.

That's very curious. How does lot numbering "cause this"?

John

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MahGah 15,613 on at

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That is interesting. I hope Dallefeld or Gavin or or JAngle can provide some insight.

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Dallefeld 235 User Group Leader on at

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There is something in setup as this is not standard functionality.

Do you have expected cost posting turned on? If so what are your Inventory Interim and COGS interim accounts?

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john.ellis 3,530 on at

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Hi Kim:

Expected Cost Posting is not turned on, and no interim accounts are set up.

John

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Dallefeld 235 User Group Leader on at

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Is there an assembly involved?

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john.ellis 3,530 on at

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No.

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MahGah 15,613 on at

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Just some more area to check

1) Do you buy or produce those lot numbers item?

2) Does that lot number item (in item card) has similar posting groups (inventory, Gen) similar to other items?

3) After invoice what will happen if you run Adjust Cost - Item Entries for that item?

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