Item Charges with Positive Adjustments

girish.joshi

In 5.0 there doesn't seem to be a way to assign Item Charges to Positive Adjustments.

Has anyone made a modification to allow this?

Alex_Chow

The reason why the function is not there is because it doesn't make sense. Item adjustment has nothing to do with inventory coming in or going out on the docks.

One way you can allocate item charge is to transfer the items from one location to another the allocate your item charges to it.

But a better question is: why do you have such a requirement?

Kowa

Item charges are not meant to revalue stock quantities caused by an in-house process. Positive adjustments are the result of phys. inventory or manual corrections, where no vendor or customer is involved.

Use the Revaluation journal, enter the item no. and then go to the field "Applies-to Entry". Select the positive adjustment entry you want to revalue. This will automatically fill in all the other non-editable fields as well as the posting date. Then fill in the new unit cost in "Unit Cost (Revalued)" and post the journal. This will add a value entry to the positive item ledger entry ( just as the posting of the item charge would have done, and it also revalues the whole original quantity , not only the remaining quantity) to modify the "Cost Amount (Actual)" of the ILE.

girish.joshi

The main concept with trying to use item charges or revaluations is we get the payable to a vendor and neatly wrapped up with a payable created to the vendor. The advantage this has over the alternative method is (p.i. with a g/l line and reval entry) is that NAV will handle returns out of the box.

There is another good reason. Typically, we migrate our inventory over as Positive Adjustments. If Item Charges are part of their normal workflow, and what would they do for goods that they had received, but hadn't received their ancillary invoices for? The workaround of creating dumb invoices is too cumbersome and would require someone with cross departmental privileges to execute (people in short supply).

Perhaps we should have brought over the balances as Receipts? I wonder how many of us do that?

girish.joshi

Similar question about item charges -- why are they not included for Sales Credit Memos but only Return Receipts? Goods can be received via a Sales Credit Memo without a Return Receipt document....

Alex_Chow

girish.joshi wrote:

Similar question about item charges -- why are they not included for Sales Credit Memos but only Return Receipts? Goods can be received via a Sales Credit Memo without a Return Receipt document....

This can be done. All you need to do is ensure the Return Receipt on Credit Memo is checked on on the Sales & Receiveable setup.

Alex_Chow

girish.joshi wrote:

The main concept with trying to use item charges or revaluations is we get the payable to a vendor and neatly wrapped up with a payable created to the vendor. The advantage this has over the alternative method is (p.i. with a g/l line and reval entry) is that NAV will handle returns out of the box.

There is another good reason. Typically, we migrate our inventory over as Positive Adjustments. If Item Charges are part of their normal workflow, and what would they do for goods that they had received, but hadn't received their ancillary invoices for? The workaround of creating dumb invoices is too cumbersome and would require someone with cross departmental privileges to execute (people in short supply).

Perhaps we should have brought over the balances as Receipts? I wonder how many of us do that?

Are you talking about a new implementation? Or using positive adjustment when you receive the goods as your normal workflow?

The freight invoices typically comes in a few days or weeks after you receive the good. This is normal. Why do you need to create a dumb invoice?

girish.joshi

I was referring to a new implementation. The inventory balances are positive adjustments and some have freight charges that have yet to be received.

The "dummy invoices" would be documents, either tranfers, or a combination of a negative adjustment and a purchase order, to create a NAV document that item charges could then be applied. I don't think that's a very good solution.

Thanks for the tip about Sales Credit Memos.

Alex_Chow

Yeah... I get your point. But in a normal business process, you wouldn't allocate item charge to item adjustments.

Likewise, the process of importing beginning balance to the item journal during a new implementation is not part of the normal business process. This is probably the reason why you're not able to do allocate item charge on the item journal.

Since importing item in the item journal is a special cirumstance, you would need to use a special cirumstance to be able to allocate item charge. In this case, using transfer orders.

girish.joshi

It is actually a fairly simple modification to implement. I finished it a little while ago.

knm

I'm having the same issue right now, for a new implementation.

I was thinking of a good way to migrate the "Item Charges" into NAV, but I would like to skip the unnecessary steps on creating the Invoices.

I would greatly appreciate if you could share with me how you managed to apply the "Item Charges" for Item Journal entries.

Thank you.

Kenji