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How does a company value wip and inventory using the dynamics module for the first time? Until now all cost were expensed to profit and loss. Now they want to use the inventory module to record sale of items and use manufacturing system to produce more. How should the current inventory and wip be moved from profit and loss to balance sheet?
One easy way is to decide that starting from a certain date you just will handle all new purchases and production using manufacturing functionality - you will create item cards and make the needed setup to run manufacturing process, and make sales of registered output. All the previous costs that were written off to P&L you keep there and do not move it back. Just adjust the items quantity based on the result of the stock-taking.
If you really want to move back from P&L the expenses: perform a stock-taking to learn how much items and raw materials you have in stock; then you will need to create item cards and use item journal to register quantities and amounts of items in balance with the corresponding P&L accounts.
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