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Dynamics 365 Community / Forums / Microsoft Dynamics NAV (Archived) / Inventory Item Reclass...
Microsoft Dynamics NAV (Archived)

Inventory Item Reclassification Journal - General Ledger Entries

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Posted on by Ahmad_Safadi 369

When posting an inventory item reclassification journal, the following general ledger entries are created

Account                                                                  Debit                 Credit

Inventory Account                                                   X

Inventory Account                                                                             X

Inventory Adjmt Account                                       X

Inventory Adjmt Account                                                                   X

 

 

My question is precisely about the second two entries, why do I need to have the inventory adjustment account as an intermediary account when all I am doing is transferring item from one location to the new location (considering that the two locations are linked to the same GL account) ?


Is there any configuration setup which prevents using the inventory adjustment account above ?

 

 

Thanks in Advance,

*This post is locked for comments

  • RobertasR Profile Picture
    RobertasR 5,002 on at
    RE: Inventory Item Reclassification Journal - General Ledger Entries

    True, I meant 'Transfer Orders'. The way NAV is built, you will have to create and use Transit location with it's own posting group, and transfer order is always a two-step (first ship and then receive) posting. It might appear a bit clunky for the first few times, however it will keep tractability and won't involve Income Statement GLs when posting.

  • Ahmad_Safadi Profile Picture
    Ahmad_Safadi 369 on at
    RE: Inventory Item Reclassification Journal - General Ledger Entries

    Hello Robertas

    You are saying that I am supposed to use the "Transfer Journal", do you mean the transfer order ?

    If So, I don't have an in-transit for that, can I use it without the in-transit in one step ?

  • Verified answer
    RobertasR Profile Picture
    RobertasR 5,002 on at
    RE: Inventory Item Reclassification Journal - General Ledger Entries

    Hi,

    when posting the reclassification journal, in the background system writes-down the original item and writes-up the new item. Hence the write down is Credit in Inventory and Debit in Adjustment account, and write-up is Debit in Inventory and Credit in Adjustment account.

    The reclassification journal should not be used to transfer items between locations, but rather more generic - change one item to another item. Specifically for transfers please use the transfer journal and you'll see different postings in your GLs.

    Hope that explains it.

    Robertas

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