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Items with negative unit costs on Valuation report

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Posted on by 95

Hi All, 

When we run our inventory valuation report at the end of our financial year ( December 2022), there are some items that have negative unit costs for a number of locations.

What could cause the negative unit costs and how can it be corrected.

We are using D365BC -Cloud

  • Suggested answer
    Inge M. Bruvik Profile Picture
    Inge M. Bruvik 32,748 Super User 2024 Season 1 on at
    RE: Items with negative unit costs on Valuation report
    [quote user="PETERFL"]

    Thanks for responding.

    How do I process all the cost adjustments for the items and it is possible to post the adjustments in 2022 December 31st)

    [/quote]

    You can read more about configuring and doing cost adjustment in my blog article:

    https://bc365.co/2022/01/15/cost-adjustment-in-microsoft-dynamics-365-business-central/

    Hope you find that helpful.

  • Suggested answer
    Manan_Shah Profile Picture
    Manan_Shah 1,457 on at
    RE: Items with negative unit costs on Valuation report

    Hi Peter,

    Please check below link, It will help to understand the Process of Adjustment Item entries.

    www.solsyst.com/.../adjust-cost-what-it-is-and-why-you-need-it

  • PETERFL Profile Picture
    PETERFL 95 on at
    RE: Items with negative unit costs on Valuation report

    Thanks for responding.

    How do I process all the cost adjustments for the items and it is possible to post the adjustments in 2022 December 31st)

  • Suggested answer
    Inge M. Bruvik Profile Picture
    Inge M. Bruvik 32,748 Super User 2024 Season 1 on at
    RE: Items with negative unit costs on Valuation report

    Have you processed all the cost adjustments for the items?

  • PETERFL Profile Picture
    PETERFL 95 on at
    RE: Items with negative unit costs on Valuation report

    Hi, 

    Thanks for your reply

    This is an example of what is happening on the inventory valuation report. for Item A we are using FIFO valuation method

    Item A (location 1)   2     -10.00      -20.00

    Item A (location 2)   2     -100.00     -200.00

    Item A (location 3)   5       -1.00         -5.00

  • Suggested answer
    YUN ZHU Profile Picture
    YUN ZHU 74,115 Super User 2024 Season 2 on at
    RE: Items with negative unit costs on Valuation report

    Hi, If the quantity is 0, but the amount is negative, this may be a problem from the NAV era.

    Hope the following can give you some hints.

    https://learn.microsoft.com/en-nz/dynamics365/business-central/design-details-inventory-valuation

    https://archerpoint.com/why-does-inventory-valuation-show-zero-hand-has-value/

    https://www.apcommerce.com/articles/why-you-have-negative-inventory-value-with-0-quantity-%E2%80%93-navision-37b-to-navision-50/

    Thanks.

    ZHU

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