Options

Inventory Valuation : Lot of Problems

ssinglassingla Member Posts: 2,973
Dear Friends,

I have a critical problem staring in my face::

My client is using a lot of customization which was done their previous solution partner. The client is a manufacturing company which is processing material and selling it. they are not using manufacturing module or the BOM journal so all the transformation of raw material to finished goods is done thru positive and negative adjustement. Further as they are using average costing and the method of average costing used in inventory setup is set to "Item" though they are using some 20 location there is very disturbing results in the inventory valuation.

we have changed the inventory setup to "Item, Location, Variant" which require adjustment in the inventory cost of 3 years. this is really threating as the last 2 years have been closed and the 3 rd year was closed in March though the transfer to retained earning has not been done.


the quantities and the value in the system is not correct and a lot of adjustment is needed. 6 Months have passed from the last fiscal year closure and 75% of the item uses item tracking by lot ,and the lots has been consumed.

I wonder how to correct the inventory and stablize the implementation.
CA Sandeep Singla
http://ssdynamics.co.in

Comments

  • Options
    David_SingletonDavid_Singleton Member Posts: 5,479
    Without really knowing the scenario of your client, its impossible to say, but the starting point will be to investigate the possibility of creatign a physical inventory to set all inventory to zero, then repopulating all inventory with the correct values in a new physical inventory.
    David Singleton
  • Options
    ssinglassingla Member Posts: 2,973
    Six months have passed the date on which inventory has to be recalculated/revalued and if i follow the advice then will the adjust cost batch job change the valuation.
    CA Sandeep Singla
    http://ssdynamics.co.in
  • Options
    ssinglassingla Member Posts: 2,973
    Further as Lot tracking is activated I can not pass a negative adjustement of the items which has been consumed since the period closing.
    CA Sandeep Singla
    http://ssdynamics.co.in
Sign In or Register to comment.