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Cleaning Up Zero Quantity On-Hand Inventory With Financial Costs

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Does anyone know how to clean up zero quantity on-hand inventory with offsetting financial costs?  See below:

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  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 291,979 Super User 2025 Season 1 on at
    RE: Cleaning Up Zero Quantity On-Hand Inventory With Financial Costs

    Hi James,

    I would be interested if you tested your thoughts. For correcting the data, you can try using the Revaluation for moving average function. I'm not sure if that would fully suit your needs.

  • SU-22040800-0 Profile Picture
    SU-22040800-0 2,418 on at
    RE: Cleaning Up Zero Quantity On-Hand Inventory With Financial Costs

    Hi Andre'

    I agree about the Inventory Closing, and MAC. No closing process is required for MAC costing method.

    The way i am assuming it occured, is that there was a movement journal created (not posted) moving a quantity of 1, moving Avg of 100 from WH1 (Qty -1) to WH2 (Qty +1).

    Then there were a few product receipts that came in, that reduced the MAC to 90.

    Now when the journal is posted after the product receipts, and the lines still have a value of 100, it leaves a value of 10 in WH1.

    I still need to test this theory though.

    To eliminate the cause of the issue, I am looking at using the TRANSFER journal, instead of the MOVEMENT journal.. But how to clear out the financial balances I am not sure.

  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 291,979 Super User 2025 Season 1 on at
    RE: Cleaning Up Zero Quantity On-Hand Inventory With Financial Costs

    Hi James,

    The inventory closing is not used for moving average costing. This will indeed not recalculate the current transactions. Can you elaborate how the average cost got changed from 100 to 95?

  • SU-22040800-0 Profile Picture
    SU-22040800-0 2,418 on at
    RE: Cleaning Up Zero Quantity On-Hand Inventory With Financial Costs

    No problem - and thank you!

  • BillurSamdancioglu Profile Picture
    BillurSamdancioglu 16,615 Most Valuable Professional on at
    RE: Cleaning Up Zero Quantity On-Hand Inventory With Financial Costs

    Hi,

    I am sorry that I am out of solutions.

  • SU-22040800-0 Profile Picture
    SU-22040800-0 2,418 on at
    RE: Cleaning Up Zero Quantity On-Hand Inventory With Financial Costs

    Hi Billur - firstly - thank you for the quick replies!

    I tried this (on our test environment) and unfortunately the amount still sits there..

  • Suggested answer
    BillurSamdancioglu Profile Picture
    BillurSamdancioglu 16,615 Most Valuable Professional on at
    RE: Cleaning Up Zero Quantity On-Hand Inventory With Financial Costs

    Are you able to mark these two transactions from inventory marking?

    If so mark them and then try to re run the re-calculation.

    Please do this first on test environment.

  • SU-22040800-0 Profile Picture
    SU-22040800-0 2,418 on at
    RE: Cleaning Up Zero Quantity On-Hand Inventory With Financial Costs

    Yes it does.. And I believe i know the cause:

    There was a movement journal from Warehouse 1 into Warehouse 2 (Qty=1) that was created when the Moving Average Cost (MAC) was set as e.g. 100. Then the MAC changed to 95. There was then a movement journal created from Warehouse 2 to Warehouse 1 (Qty=1) with the MAC as 95.

    This then left a Qty=0 and Financial amount = 5 in Warehouse 2.

    This is what I'm trying to clean up

  • Suggested answer
    BillurSamdancioglu Profile Picture
    BillurSamdancioglu 16,615 Most Valuable Professional on at
    RE: Cleaning Up Zero Quantity On-Hand Inventory With Financial Costs

    Does this transactions have financial dates?

    Another idea can be that you may adjust value from inventory closing form.

    But first try on test environment.

  • SU-22040800-0 Profile Picture
    SU-22040800-0 2,418 on at
    RE: Cleaning Up Zero Quantity On-Hand Inventory With Financial Costs

    Hi Billur - I just ran the recalculation for an item that had the problem, and unfortunately it did not remove the financial value from the 'empty' warehouse.

    Any other suggestions?

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