Revaluation Journal

Navi_Learner

Hi Expert! I have a question regarding the journal. If we need to adjust the unit cost of an item, do we have to access from this journal? When I tried to adjust the unit cost today, I have an error. "Quantity must not be 0 in Item Journal Line Jounal Template Name='REVALUATION', Journal Batch Name='DEFAULT', LINE NO.='1000'."
How to properly adjust the unit price? Thanks in advance!

garak

Did you start the report "Calculate Inventory Value" from Reval. Journal?

Navi_Learner

Sorry, I didin't . Since this is the first time for me to do it, could you let me details of each step and how? Thanks so much!

Savatage

open the blank journal->functions->calculate inventory value

enter an item no if you want to fix one item - look at the options tab

posting date = today
doc no = ValueCorrection12052008 (or whatever)
your choice of what you want to do
by item or by each ledger entry
run

Usually is asks me to run the adjust costs report first before allowing me to run the report.

garak

To know more about this report (calculate inventory value) press the help button on it. I know, it's not the answer that you would hearing .... but there is all described (and it's better and detailed then my notes in english language). Also, if you follow there the links, you can see way and when do you need this report.

Regards

Navi_Learner

Hi, I tested the way, but it didn't work. I checked back the average cost, but it is still the same cost. In the function tab, I filled all the information, and then click OK. I couldn't find the Run button you mentioned. Please!

Savatage

the report should fill the journal with a line or lines depending on the option you choose.

You must then correct the cost in the field - test report (check it) - post

the run means run the calculate inventory value report after filling in the item number in question & options tab - then (ok button)

don't forget about your F1 help button
Revaluation Journal Window
This journal can be used for changing the inventory value of items, for example after a physical inventory.
The revaluation journal lets you see the existing value of an item and assign a new value to it.
For Help about a specific field, click the field and press F1.

Navi_Learner

Thanks! I found just from the journal, but not from the Function button as you mentioned and if we select ledger entry from the APPLY list, there would be no error.
Is it also a correct way of ajusting the cost? If we adjusted the cost, could it affect the previous cost of the items that have been sold before.
My next question is if we write off the items, we normally do it from the item journal. Is there any other journal where we can adjust the cost, but at the same time can write off as well. Appreciate it!

Navi_Learner

I am still waiting for the reply. After the cost is adjusted, could it affect the previous invoice. For example,
If the customer bought this item at $20 at a unit price before, now we adjust the item at $10 a unit price. Could the total amount of his invoice be decreased?
I'm afraid of this and really want to know your professional suggestion. Appreciate it!!

ssingla

The invoice amount will not change and it will only reduce the cost of the item in inventory module (value entry) and debit the inventory adjustment account in G/L (or credit in case you increase the unit cost).

reema

As ssingla suggested ,

Revaluation JOurnal effects Inevntory account and Inventory adjustment account .
If u increase the item cost the Inventory account ( debit) and inventory adjustment account( credit)

If u decrease the Item cost then inventory account( credit) and Inventory adjustment account(debit).

It doesnnot effect on the posted Purchase invoice and Vendor ledger entry.

Savatage

Navi Learner wrote:

I am still waiting for the reply.

:-$ =; :-# :-k
Remember this is a free forum, most of us do not work on weekends.
To ask for reply's on your time schedule will not always happen.
Some members would even shy away from answering such demands so be patient.

If you can't wait then hire a consultant.

julia8351

Kindly refer to the Inventory Costing Material where has the detail about the Inventory Revaluation Journal...

Navi_Learner

Thanks for everyone's response and your time! Appreciate it!

Last question: Will it affect our profit margin? Thanks in advance!

garak

if you use Average cost method.

But other question:
Did you read all the manuals about these theme? OK, it's a lot of letters but there is all explained and there are good examples ....
If you doesn't have the manuals, contact you local Navision partner and say them: "Hy guy, i need these manuals for item Costing ...."

Navi_Learner

I'm sorry to bug you again! Maybe I need to let you know our current situation. We have some items that are over stocked. But by the time we purchased, it's $20.00, but now the price has dropped 50%, and it $10.00 a unit cost. I find when we do in the revaluation journal, we need to apply to the previous entries, most of which are applied to the last purchase cost. But my question is when we purchased the item at that time, it is not 10.00. If we applied to that entry, it looks like we adjust the unit cost of the previous purchase.

Is it appropriate to use this journal? Please advise! Thanks a lot!

reema

already many experts explained about the solution.

Revaluation journal purpose is to increase the item cost or decrease cost based on Market situations and also item situation (damage, shrinkage....).

U can get the solution the scenerio what u explained through Item Revaluation Journal.

In Revalution Journal U have field Appies- to -entry . This is very important field .

Using this field u can change item cost for that particular entry Like purchase.

Better to go through the Inventory costing manual .