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Inventory Valuation report

SabbySabby Member Posts: 8
We recentlyt change our Costing Method from Average to Standard Cost. Now, when we run the Inventory Valuation report, we can see the Costing Method is Standard. However, the Unit Cost field is still an Average Costing calculated from the Item Ledger Entrie.

If we are at Standard Cost, shouldn't our inventory value be based on the Unit Cost of the Item Card and not an Average Cost. calculated form the Item Ledger Entries? Can someone explain this to me?

Thanks!
Sébastien Aussant
Bath Fitter

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    ara3nara3n Member Posts: 9,256
    How did u change your costing method from average to standard cost?
    Ahmed Rashed Amini
    Independent Consultant/Developer


    blog: https://dynamicsuser.net/nav/b/ara3n
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    Miklos_HollenderMiklos_Hollender Member Posts: 1,598
    Which might relate to the fact that Navision by default does not allow the changing of costing methods on Items with transactions at all. Did a solution center do some black magic, like overriding this restriction?
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    couberpucouberpu Member Posts: 317
    What would you see if you ran inventory valuation report with detail on selected items?

    We are using FIFO and what I found out was the report would show FIFO cost at detail level yet average at total level. I guess that the sum of remaining qty vs the sum of the cost of detail lines remain the same at total line and the programmer just average them to show one cost at total line. :bug:

    It just my :idea:

    CouberPu
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    Alex_ChowAlex_Chow Member Posts: 5,063
    Navision uses average cost as the basis for calculation. After you run the adjust cost process, the proper FIFO application is applied.

    All this is explained in the Help when you search on Unit Cost Calculation

    It also depends on where you run the report. If you're just basing your report on the sales invoice line, then you'll just get the average cost. However, if you base your report on the value entry table, you'll get the actual cost.
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    sonvdbsonvdb Member Posts: 33
    If we are at Standard Cost, shouldn't our inventory value be based on the Unit Cost of the Item Card and not an Average Cost. calculated form the Item Ledger Entries? Can someone explain this to me?

    Hi Sabby, can you show how to generate two kind of reports above, thank alot.
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