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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Difference between ite...
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Difference between item ledger entries and item value entries

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Posted on by Anjelika 25

Hi all,

i would like to ask whether it is normal in navision that item ledger entries and item value entries is different by total of cost actual?

by total invoiced qty it is all same no difference.

my understanding is that item ledger entries is used for item physical movement analysis, while item value entries is used for costing analysis therefore if i want to compare iventory valuation i can only use item value entries bcs all adjustments and revaluations only appeared in item value entries. Is it correct?

  • Suggested answer
    Azqar Profile Picture
    Azqar 52 on at
    Difference between item ledger entries and item value entries
    here is the video for better understanding 
  • Suggested answer
    Community Member Profile Picture
    Community Member on at
    RE: Difference between item ledger entries and item value entries

    Yum,

    Can you doo me a favor and please run Adjust Cost - Item Entries and Post the entries. I see the Actual Cost but what I do not see if the update to the Charge(Item) updated the ILE. Here is my example:

    pastedimage1618518248954v1.png pastedimage1618518380925v3.png

    Thanks,

    Steve

  • Anjelika Profile Picture
    Anjelika 25 on at
    RE: Difference between item ledger entries and item value entries

    5D987698_2D00_1388_2D00_4559_2D00_A952_2D00_DC3CB8AFFA40.jpeg79A692E5_2D00_6760_2D00_45B8_2D00_9653_2D00_DDF345255C47.jpeg

    [quote user="Yum"]

    In my current environment the expected cost is turned on. Is it affecting the cost amount actual different between ILE and IVE?

    I still dont get whether it is right or wrong for cost actual difference between ILE And IVE.

    Read somewhere that cost adjustment and revaluation only affected in value entries.

    Based on this statement shouldnt the actual cost btwn ILE and IVE be different?

    [/quote]

    Please see screenshot attached.

    In ILE there are 3 records inserted but only 1 records inserted in IVE.

  • Anjelika Profile Picture
    Anjelika 25 on at
    RE: Difference between item ledger entries and item value entries

    In my current environment the expected cost is turned on. Is it affecting the cost amount actual different between ILE and IVE?

    I still dont get whether it is right or wrong for cost actual difference between ILE And IVE.

    Read somewhere that cost adjustment and revaluation only affected in value entries.

    Based on this statement shouldnt the actual cost btwn ILE and IVE be different?

  • Suggested answer
    Community Member Profile Picture
    Community Member on at
    RE: Difference between item ledger entries and item value entries

    Yum,

    The Cost Amount Actual value in the ILE and the Value Entries should be the same. Yes, my example shows them this way but each transaction should post the same between the two tables. I am not including if you have Expected Cost turned on and interim postings.

    Thanks,

    Steve

  • Anjelika Profile Picture
    Anjelika 25 on at
    RE: Difference between item ledger entries and item value entries

    Hey Steve,

    Thanks for the insight appreciate it.

    So it is normal that cost amount actual total in item ledger entries different with item value entries?

    From the example you provided,  qty and cost actual total should be same between ledger entries and actual entries.

  • Suggested answer
    Community Member Profile Picture
    Community Member on at
    RE: Difference between item ledger entries and item value entries

    Yum,

    Hello,

    You overview is correct but let me give you some background to help...

    Each inventory transaction, such as a purchase receipt or a sales shipment, posts two entries of different types.

    Entry type Description
    Quantity Reflects the change of quantity in inventory. This information is stored in item ledger entries.

    Accompanied by item application entries.
    Value Reflects the change of inventory value. This information is stored in value entries.

    One or more value entries can exist for each item ledger entry or capacity ledger entry.

    In relation to quantity postings, item application entries exist to link inventory increase with inventory decrease. This enables the costing engine to forward costs from increases to the related decreases and vice versa.

    Item ledger entries, value entries, and item application entries are created as a result of posting an item journal line, either indirectly by posting an order line or directly in the Item Journal window.

    At regular intervals, value entries that are created in the inventory ledger are posted to the general ledger to reconcile the two ledgers for financial control reasons.

    pastedimage1618508728310v1.png

    Example

    The following example shows how item ledger entries, value entries, and item application entries result in general ledger entries.

    You post a purchase order as received and invoiced for 10 items with a direct unit cost of LCY 7 and an overhead rate of LCY 1. The posting date is 01-01-21. The following entries are created.

    Item Ledger Entries

    Posting Date Entry Type Cost Amount (Actual) Quantity Entry No.
    01-01-21 Purchase 80.00 10 1

    Value Entries

    Posting Date Entry Type Cost Amount (Actual) Item Ledger Entry No. Entry No.
    01-01-21 Direct Cost 70.00 1 1
    01-01-21 Indirect Cost 10.00 1 2

    Item Application Entries

    Entry No. Item Ledger Entry No. Inbound Item Entry No. Outbound Item Entry No. Quantity
    1 1 1 0 10

    Next, you post a sale of 10 units of the item with a posting date of 01-15-21.

    Item Ledger Entries

    Posting Date Entry Type Cost Amount (Actual) Quantity Entry No.
    01-15-21 Sale -80.00 -10 2

    Value Entries

    Posting Date Entry Type Cost Amount (Actual) Item Ledger Entry No. Entry No.
    01-15-21 Direct Cost -80.00 2 3

    Item Application Entries

    Entry No. Item Ledger Entry No. Inbound Item Entry No. Outbound Item Entry No. Quantity
    2 2 1 2 -10

    At the end of the accounting period, you run the Post Inventory Cost to G/L batch job to reconcile these inventory transactions with the general ledger.

    The following tables show the result of reconciling the inventory transactions in this example with the general ledger.

    Value Entries

    Posting Date Entry Type Cost Amount (Actual) Cost Posted to G/L Item Ledger Entry No. Entry No.
    01-01-21 Direct Cost 70.00 70.00 1 1
    01-01-21 Indirect Cost 10.00 10.00 1 2
    01-15-21 Direct Cost -80.00 -80.00 2 3

    General Ledger Entries

    Posting Date G/L Account Account No. (En-US Demo) Amount Entry No.
    01-01-21 [Inventory Account] 2130 70.00 1
    01-01-21 [Direct Cost Applied Account] 7291 -70.00 2
    01-01-21 [Inventory Account] 2130 10.00 3
    01-01-21 [Overhead Applied Account] 7292 -10.00 4
    01-15-21 [Inventory Account] 2130 -80.00 5
    01-15-21 [COGS Account] 7290 80.00 6

     Note

    The posting date of the general ledger entries is the same as for the related value entries.

    The Cost Posted to G/L field in the Value Entry table is filled.

    The relation between value entries and general ledger entries is stored in the G/L - Item Ledger Relation table.

    Relation Entries in the G/L – Item Ledger Relation table

    G/L Entry No. Value Entry No. G/L Register No.
    1 1 1
    2 1 1
    3 2 1
    4 2 1
    5 3 1
    6 3 1

    I hope this helps.

    Thanks,

    Steve

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