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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Average Cost Method
Small and medium business | Business Central, N...
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Average Cost Method

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Posted on by Mohammed Abin 15

How can I resolve the issue with the average costing method in Dynamics 365 where my ledger is showing a negative value for an item with zero quantity in one location, but the same item with zero quantity is showing a positive value in another location? I have different unit costs for the item in different locations and use the average costing method in Item card as well in Inventory Setup.

When i post a sales invoice average cost is posted to location and cost of goods sold. This will end up with value in location with out quatity.

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  • Suggested answer
    Jun Wang Profile Picture
    Jun Wang 8,220 Moderator on at

    To resolve this issue, you can take the following steps:

    assuming the average costing setup is correct, you need to

    1/ Examine the transactions related to the item, such as purchase receipts, sales, and inventory transfers. Check for any anomalies or incorrect entries that could be contributing to the incorrect valuation.

    2/ Recalculate Average Cost: If necessary, you can recalculate the average cost for the item using the Adjust Cost - Item Entries page. This process will update the average cost based on the actual costs of the inventory units.

    issue with average costing could be complex, it needs deep look into the transaction data as mentioned above. If you couldn't figure it out, then reach to a partner for help.

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