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Outstanding Purchase Line Items -- Changing Valuation Method to Periodic

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Posted on by john.ellis 3,482

Hi:

We have a client that wants to change its inventory valuation method from FIFO Periodic to FIFO Perpetual.  

As we conducted testing of this in a test company, we noticed today that there is an issue with receiving in line items for outstanding purchase orders that were in place prior to the change.

When we try to receive in these items in Receivings Transaction Entry, we are prompted to fill in the Unrealized Purchase Price Variance account.  To try to make a long story short, this account is already in place at both the item level as well as at the Posting Accounts Setup level.  And, GP would not us manually enter this account into the receipt for posting.

It would appear that, if you change your valuation method from Periodic to Perpetual and you have outstanding purchase line items, you cannot post their receipts and ultimately cannot process them.

This client always has outstanding purchase orders.  This issue is going to be a major problem, if we change the valuation method in their live company.

Are there any solutions or, at least, workarounds?

Thanks!

John

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Microsoft Dynamics GP
  • john.ellis Profile Picture
    john.ellis 3,482 on at
    RE: Outstanding Purchase Line Items -- Changing Valuation Method to Periodic

    Hi There, Becky:

    Thank you, for the quick response!

    Wow.  That means that there's no solution.  Shoot.  

    Well, again, I do appreciate the quick response.  At least, we know.  :)

    Have a good one!

    John

  • Verified answer
    Becky Berginski Profile Picture
    Becky Berginski on at
    RE: Outstanding Purchase Line Items -- Changing Valuation Method to Periodic

    Hello John,

    Thank you for using Community Forums. My name is Becky and I will assist you.

    Here are general steps to change the valuation method. Note that the item should be removed from all open SOP and POP documents. 

    1. You can change the valuation method by using the Change Valuation Method window (Tools - Utilities - Inventory - Change Valuation). However, if you change the valuation method, it will only take effect on the transactions that you will enter afterwards. It will not change the transactions that were entered prior to the change. If you have transaction on other modules using the item that you would like to change the valuation method, this will not change even if you use the utility.

     

    1. Items being updated cannot exist on any unposted/outstanding transactions. This includes sales orders and invoices, purchase orders and related purchase order receipts, and inventory transactions or stock counts. You will need to either complete processing on these documents or delete or void the documents or at the very least remove the line item in question from the documents

     

    1. Changing valuation methods carries legal restrictions in some areas. If this is not a new install, contact your Tax Adviser before you change inventory valuation methods.

     

    1. If the item has any allocated quantity, the valuation method cannot be changed. Examine the Item Quantity Maintenance window to determine whether there are allocated quantities. To do this, click Cards, click Inventory, and then click Quantities/Sites.

     

    1. The items that you are changing can only have a type of Sales Inventory or Discontinued. Look at Item Maintenance (click Cards, click Inventory, click Item) to check the Item Type.

     

    1. Have all users exit Inventory, Sales Order Processing, or Purchase Order Processing when you make any changes to the valuation method. If an item is in use, it will not be updated.

     

    1. The item cannot be included in an inventory transaction.

     

    1. The Item cannot be on a stock count.

     

    1. You can change the valuation method for a range of items, descriptions, generic descriptions, or item classes. To do this, enter your range, and then click Process. After the process is complete, you have the option to print the Valuation Method Change Audit report. This report lists the item, the item description, the old valuation method, and the new valuation method.

     

    The POP10110 table holds the valuation method for each line on a purchase order in the VCTNMTHD column. When you update the valuation method it does not update this field. When you receive the lines, they will be received at the old valuation method not the new.  My suggestion is still to remove them from the POs prior to changing the valuation. It would not be supported to change that field.

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