Standard cost roll- need to correct user error

AlexWiley

Hello everyone! My client got nervous and has created a situation by stopping their standard cost roll halfway through!

With their modified system the way it was tested/planned was to:
1) Load the revaluation journal
2) Update the standard cost on the item/SKU cards
3) Run a batch job to pull the new standard to the 'Unit Cost (Revalued)' field
4) Post the revaluation

This tested perfectly. However, after they populated the new standard unit cost they didn't post the revaluation journal! After a week they told me about this, and so there have been transactions going in at the new standard cost on top of the old. I now need to correct this.

Has anyone had to do this before? I was going to recalculate the inventory value back to the old standard cost, then recalculate a second time at the new standard. The first run should adjust out the variances from the new standard and the second will be their effective role.

If anyone has done this before or sees a flaw in my logic or a step I missed I would greatly appreciate any input.

AlexWiley

On second thought, do I even need to post the first revaluation?

Regardless of how many times items posted with different standard cost will it all wash out correctly if the "Unit Cost (Revalued)" is set to the new standard cost?

Or, will my inventory never be correct? If the revaluation journal goes off of number of items in inventory then:

2 items bought at standard cost $1
*standard cost changed, no revaluation done*
1 item bought at standard cost $2

My inventory value is now $4

If an item is now sold, it goes out at the new standard, right? So we sell one item and my inventory value goes down by $2.

I revalue my inventory to $2/ea and my inventory value is now $4 with 2 items.

I sell both items and now my inventory value is -$2 instead of $0 because I didn't revalue. Will Adjust Cost- Item Entries fix this after the revaluation?