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Hi all
have good day
We have some items with zero balance, however Financial cost amount is Negative
What is the reason for this, how to avoid it, and how we resolve this case
Regards
Hi Fouad
To understand the Costing of the Physical inventory you need to look at a more detailed view were you can see the Financial quantity and the Physical quantity.
You get to this view by clicking on the Item number. You overall "Physical inventory" may be 0.00 but Posted Quantity (Financial quantity) may be negative and Physical quantity (Deducted + Received) may be Postive.
It seems that you have invoiced your customers prior to receving the invoice from your vendors. A Recalc or Inventory close will not have an effect right away. The COGS is just estimated. Once the PO invoices are registered and Recalc or Inventory close is run the Financial cost will adjust.
From a Costing view on Inventory:
Physical Inventory quantity = (Deducted + Received)
Physical cost amount
Financial inventory quantity = Posted quantity
Financial cost amount
Total Inventory quantity = Physical Inventory quantity + Financial inventory quantity
Total Inventory amount = Physical cost amount + Financial cost amount.
I strongly recommend using the Inventory value report were the above columns are all availible
As Dolores says, you most likely have sold (issued / consumed) the items, and financially updated those orders (i.e. if these are items which are sold, you have invoiced the sales orders). But you have not financially updated whatever order was responsible for bringing the items in to inventory (i.e. if these are items which are purchased from a vendor, you have not posted the purchase order invoice).
Once you understand why this happens, its not normally something to worry about. The only way to stop it happening is to block the financial update of your issues (ie. block the invoicing of your sales orders) before you have enough financially updated receipts. Although this is possible, I cannot remember hearing of any organisation that actually wanted to do that.
If these items are manufactured on production orders, well then you do have some control over how quickly the production orders are Ended, but vendor invoices, and the related matching & approval process are often outside of your control.
Hi Fuad,
Can you check that all receipts are financially updated if possible and then run another recalculation? If that does not resolve the issue, please open a support case.
Regards
Dolores
Hallo Dolores.
good morning
yes we tried running an inventory recalculation for these items
Regards
fouad
Hello Fuad,
What costing model are you using?
Have you tried running an inventory recalculation for these items?
Regards
Dolores
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