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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / Posted Invoice batch c...
Microsoft Dynamics GP (Archived)

Posted Invoice batch creating a whack of cost adjustments?

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Posted on by Dee Bee 815

Running GP 10.

I just posted a small batch of receivables (3 invoices) and got the General Posting Journal, as expected, but then, a 7 page "Cost Adjustment" batch came off the printer automatically with journal entries that go back 5 years, each of them making a small adjustment between the CoGS and Inventory accounts (for one of the products on the invoice).

The amounts were tiny - from $0.01 up to $0.47, with a batch total of under $10, and all the adjustments are between the same two accounts(**), just in different months/periods, but they go back to 2007 (!)

We post invoice batches every day, but this is the first time something like this has happened. Can anyone help me understand why?  Possibly someone accidentally reconfigured something, or turned on or off a checkbox config switch?

The batch didn't post, since most of the periods have been closed, but I'm not sure whether to investigate how to get it posted, or to trash it and forget it happened.

Can anyone help me understand?

;-D

(**)The entries in 2010 include a close-out of the amount to retained earnings.

*This post is locked for comments

  • Dee Bee Profile Picture
    Dee Bee 815 on at
    Re: Posted Invoice batch creating a whack of cost adjustments?

    Thanks, Leslie.  I don't know that we can reasonable change our inventory costing method (after years of history) but I'll do some reading, and determine how to proceed.

  • L Vail Profile Picture
    L Vail 65,271 on at
    Re: Posted Invoice batch creating a whack of cost adjustments?

    DeeBee,

    I think the culprit is the Average Perpetual Method and the kinds of situations like you described. The Average perpetual method only works well when you do everything in order and never go negative. Often Standard Cost (a periodic method) is a better answer than Average perpetual. Average Perp has been my Nemesis in the past. It sounds like you have the white paper on inventory costing. if you do not, I would look it up - it is quite informative.

    Kind Regards,

    Leslie

  • Dee Bee Profile Picture
    Dee Bee 815 on at
    Re: Posted Invoice batch creating a whack of cost adjustments?

    Hi Leslie-

    Thanks for taking the time to reply.  If I'm looking at the right item (the invoice had only one item that would have affected these particular accounts, and this is it) then the Purchasing Option for "Revalue Inventory for Cost Variance" is DEselected (so the Tolerance is greyed out, and zero).

    We're using weighted average costing method.

    BTW, I only figured out recently (new reason to dig into DynGP's inner workings) the situations under which the inventory costs are revalued, and this 'Cost Adjustment' GPJournal prints - we have occassions where we have posted manufacturing without having received the raw material, so when we do, the manufactured inventory is revalued accordingly.  

    Strangely, though, the dates of the adjustments in this case don't correspond to inventory activity for this item.  I would have thought that they should.

    ;-D

  • L Vail Profile Picture
    L Vail 65,271 on at
    Re: Posted Invoice batch creating a whack of cost adjustments?

    Hi DeeBee,

    What a whirl!

    There are a couple of things that come to mind. First, what inventory costing method are you using? Next, in the Item Purchasing Options Maintenance window, is the Revalue Inventory for Cost Variance checked? If so, what is the Tolerance percentage?

    Kind regards,

    Leslie

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