Adjust Item Costs/Prices...

hansika

Hi to every body,



i read that inventory costing material. I got over all idea bout costing methods and Adjust Cost - Item Entries... and remaining things. But i could not find about that " Adjust Item Costs/Prices... batch job ".
i did not have any material regarding this " Adjust Item Costs/Prices...".i would like to have with practical secnario about this Adjust Item Costs/Prices.... .it is possible put with one example about this Adjust Item Costs/Prices... and elaborate this issue with example.
If u have any material send to me.

thanks and regards

muksha

Just purchase one material on defferent rates with different vendors and consume it in manufacturing or do the negative adjustment and than run the batch job to see the effect. The batch job is in the inventory section of Finance Module.

David_Singleton

This batch is poorly named, and really should not be compared with inventory costing routines.

All this Batch does is update the CARD Costs and Prices for an Item, it really has no connection to the costs posted to inventory, and in terms of Sales only affects the default sales price of an item.

having said that, its a very useful batch, and one that I modify a lot to perform Item Card Updates for clients.

A better name might be "Item Card Cost/Price Update"

David_Singleton

To test an example, run the batch on a test database, leave the first tab blank, and on the second tab, leave the defaults, but change the Adjustment factor to 1.1.

When you run this, all the Item Card Prices will be increased by 10%

hansika

Thank u David Singleton,


I could not get what u told. could explain detail this senario. I expecting answer from u ,like how u defined RUN and RUN MODEL. If it is possible please explain like this......................Other wise if u hav any material throw it to me.

i hope u can provide answer


thanks and regards

David_Singleton

Sure its quite straight forward.

Most of the processes relating to costing, discuss posted documents and entries. Like Posted Sales Invoice and Posted Purchase receipt and Item ledger entry and Value Entry and General Ledger and GL entries. All these tables (and others) are used to calculate the actual costs and prices in Navision, and are what is used for Accounting reporting such as financial Statements.
This is all covered under Inventory Costing. The batch processes (periodic Activities) "Post Inventory Cost to G/L" and "Adjust Cost - Item Entries" all belong in this category.


But on the other side BEFORE you post anything you you need to do setup, and amongst all the setup, are the fields on the Item card which ARE NOT POSTED to the GL, but are used as the default values before posting. For example Unit Price from the Item card is copied into the Line of a Sales Order as a SUGGESTED sales price. But you can change it here and post a different price. Most of the numbers that you see on the Item card are just defaults or suggestions, they are not the final number that is posted to the GL. All of this is covered by Inventory Setup, and includes the Batch Process "Adjust Item Costs/Prices".

Now the important thing, is that "Adjust Item Costs/Prices" is named wrong (IMO), and is on the wrong menu. Currently it is on the FINANCE menu, but it should be moved somewhere else. So when you run this batch ("Adjust Item Costs/Prices") all you are doing is changing the numbers on the card, you are NOT affecting any postings or real data.

In summary
Inventory Setup is what you do to setup Item Costs and Prices BEFORE they hit the GL. (including "Adjust Item Costs/Prices").

Inventory Costing is what you do with entries AFTER they are posted to correct any changes due to the difference between Expected costs and actual costs.


Hope this helps.

hansika

thanks David,



You gave a wonderful explanation. If u dont mind i would like to say one thing. U explained that what i know. U are not getting what i want exactly.
i will explain.i know how it works Adjust Cost - Item Entries... with practical senarioes. Like that i want how it works that Adjust Item Costs/Prices...
simply i am not getting what is the exact use of that Adjust Item Costs/Prices....i hope now u can get what i want.
provide one example with Adjust Item Costs/Prices..., when u run that batch job.

i hope u can put u r valuable suggestions to me


thanks and regards

David_Singleton

David Singleton wrote:

To test an example, run the batch on a test database, leave the first tab blank, and on the second tab, leave the defaults, but change the Adjustment factor to 1.1.

When you run this, all the Item Card Prices will be increased by 10%

Just try this.

pick any item card and look at the before after results.

Deep

Just go through these steps and you will know what this batch job does-

1. Create a new Item. Complete all the fields with Unit cost and Unit price. Take a note of all the values you write.

2. Create a purchase order for any quantity with Unit cost other than what is on item card and post the order as received & invoiced.

3. Create a sales order with any quantity other than that of Item card and post as shipped and invoiced.

4. Check the invoicing tab on item card and make a note of all values.

5. Repeat steps 2 and 3 for two-three times by changing the cost and prices everytime (also note the values)

6. Now run Adjust cost-item entries and check the Invoicing tab on card. The Cost fiels must have updated, but not the prices.

7. Now run Adjust item-cost prices with adjustment factor 1.5 and check the values.

The Unit price over the card must have been updated with 50%.

You can see that the batch job is used to change the prices(Sales prices) of items. After running this batch job, every time when you make a Sales order, the updated Price will be copied to Sales Order field "Unit price Excluding VAT".

reema

Hi Deep & David,



One more time special thanks to Deep & David. Deep U have given a wonderful explanation . this explanation clarified my doubts also. Now i dont have any doubts on this batch job how to use.

thanks to hansika, u put a good question . I hope it will help to freshers


Have a nice Day
Thanks a Lot