facing difference between inventory valuation report and G/L account

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Suggested Answer
Paras mehan asked a question on 12 Oct 2017 4:31 AM

Hello to all,

I am using nav 2016, and facing issue between the inventory valuation report and the balance reported in the general ledger. when i run the inventory reconciliation to gl then showing difference balance on the front of cogs account interim and warning shows: expected cost setup. In total field warning shows direct posting.

how can i resolve it ? please suggest me as soon as possible.

Thanks.

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Manish Sharma responded on 13 Oct 2017 12:05 AM

Have you executed the adjust cost batch job.

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Paras mehan responded on 13 Oct 2017 12:42 AM

Hi Manish,

Thanks for response

Yes, I had run adjust cost batch job.

In General posting setup in cogs account interim they mention income statement account but when i mention b/sheet account then difference increases.

Regards

Paras mehan

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Suggested Answer
AJ Ansari responded on 31 Oct 2017 11:58 PM

Hi Paras,

Disable Direct posting to all G/L Accounts in the Chart of Accounts that are associated with Inventory Posting in any way (check the Inventory Posting Setup and the General Posting Setup screens). This is done by unchecking the Direct Posting field on the G/L Account Card for the aforementioned accounts. This prevents users from posting anything to these accounts directly using a Journal Entry / transaction.

Anything that is posted to these accounts (with Direct Posting disabled) would only come by the use of Item, Resource, etc. thereby ensuring that both the General Ledger and the relevant subledger like the Item subledgers are both updated as a result of the posting.

If you change this property on a G/L Account, it will not fix any historical issues, but it will prevent this from happening on new transactions entered in NAV.

As for Expected Cost posting, check in Inventory Setup to see if Expected Cost Posting to G/L is enabled. And check the General Posting Setup to see if the COGS Account (Interim) and Invt. Accrual Acc. (Interim) are populated. These columns may be hidden by default.

Also, have you run Adjust Cost Item Entries and the Post Inventory Cost to G/L reports? If you do not have Automatic Cost Posting enabled in the Inventory Setup, you will want to make sure you run the Post Cost to G/L report periodically, or your COGS will not post to G/L.

I hope this helps. If my response has answered your question, please verify by clicking Yes next to "Did this answer your question?"

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Suggested Answer
AJ Ansari responded on 31 Oct 2017 11:58 PM

Hi Paras,

Disable Direct posting to all G/L Accounts in the Chart of Accounts that are associated with Inventory Posting in any way (check the Inventory Posting Setup and the General Posting Setup screens). This is done by unchecking the Direct Posting field on the G/L Account Card for the aforementioned accounts. This prevents users from posting anything to these accounts directly using a Journal Entry / transaction.

Anything that is posted to these accounts (with Direct Posting disabled) would only come by the use of Item, Resource, etc. thereby ensuring that both the General Ledger and the relevant subledger like the Item subledgers are both updated as a result of the posting.

If you change this property on a G/L Account, it will not fix any historical issues, but it will prevent this from happening on new transactions entered in NAV.

As for Expected Cost posting, check in Inventory Setup to see if Expected Cost Posting to G/L is enabled. And check the General Posting Setup to see if the COGS Account (Interim) and Invt. Accrual Acc. (Interim) are populated. These columns may be hidden by default.

Also, have you run Adjust Cost Item Entries and the Post Inventory Cost to G/L reports? If you do not have Automatic Cost Posting enabled in the Inventory Setup, you will want to make sure you run the Post Cost to G/L report periodically, or your COGS will not post to G/L.

I hope this helps. If my response has answered your question, please verify by clicking Yes next to "Did this answer your question?"

Reply