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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Charge (Item) Affectin...
Small and medium business | Business Central, N...
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Charge (Item) Affecting Prior Accounting Periods

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Posted on by GS-17051342-0 128
Has anyone notice that Charge (Item) affects COGS in prior accounting periods. I closed and produced financials for the month of November a couple of days into December. Just last week I reran the financials for November and noticed that my net income has changed. I discovered that it was a purchase invoice with Charge (Item) that caused this problem. I had received in a freight invoice that I was assigning to a purchase receipt. I assume the change in COGS occurred because the system is trying to allocate the additional charge to inventory which has already been sold to a customer. I understand the logic. The problem I am having is that this adjustment shouldn't affect closed accounting periods. In other ERP systems that I have used, the system will apply this additional charge to "cost variance' GL account on the income statement based on the posting date. So my question is how do i stop Business Central from messing up periods that are closed. 
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Dynamics 365 Business Central
  • Suggested answer
    Valentin Castravet Profile Picture
    Valentin Castravet 25,388 Super User 2024 Season 2 on at
    Charge (Item) Affecting Prior Accounting Periods
    You can close the posting date restrictions in the General Ledger Setup as soon as the calendar month ends. This ensures that inventory adjustments made by the system are posted in the new month. However, since accruals and other month-end entries may still need to be posted, you can use the User Setup to apply posting date restrictions for specific users who need to post in the closed month. This flexibility is why the system provides posting date restrictions in both the General Ledger Setup and the User Setup pages.
     
  • Suggested answer
    Yi Yong Profile Picture
    Yi Yong 1,702 Super User 2024 Season 2 on at
    Charge (Item) Affecting Prior Accounting Periods
    Hello,
     
    You are right, the General Ledger Setup posting period do not need to follow calendar period.
    You should allow the next period after the closing of the previous month, which is usually a couple of days on the following month.
  • GS-17051342-0 Profile Picture
    GS-17051342-0 128 on at
    Charge (Item) Affecting Prior Accounting Periods
    Hi All,
     
    I see the solution which you all mention in general ledger setup. It takes us about 5 days to close the month. During those 5 days we are posting month end journal entries. Mostly accruals. In this scenario the numbers for the month can still change but I guess it doesn't matter if I haven't yet presented the numbers to management.
  • Suggested answer
    Yi Yong Profile Picture
    Yi Yong 1,702 Super User 2024 Season 2 on at
    Charge (Item) Affecting Prior Accounting Periods
    Hello,
     
    You must change the posting period in "General Ledger Setup".
    Closing the accounting period does not stop you from posting into the earlier period.
     
    Otherwise, you can use "Inventory Periods".
  • Suggested answer
    Khushbu Rajvi. Profile Picture
    Khushbu Rajvi. 6,798 Moderator on at
    Charge (Item) Affecting Prior Accounting Periods

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