never run Adjust Cost Item Entries

j.marselo

hi all,

i am wonder, what is really going to happen if we never do any ACIE job?

i have stopped doing it for 4 months, just courious to see what happen. however, i couldn't find anything strange. i can see only fewer check mark to item ledger entry table.

please help me to understand.

thank you.

AdamRoue

So what are your costing settings and what is your costing method? It is a little difficult to answer this question without them

Alex_Chow

In a nutshell, if you stopped running it,
1. The item cost will not be correct.
2. The inventory value will not match to G/L

muksha

It may also possible that your Finished Good inventory will go negative if you have implemented manufacturing which is dengerous..

j.marselo

AdamRoue wrote:

So what are your costing settings and what is your costing method? It is a little difficult to answer this question without them

Adam, costing method is Standard for manufactured f.g. items , Average for other items (raws, non-trade, supportings, and others)

AlexChow wrote:

In a nutshell, if you stopped running it,
1. The item cost will not be correct. | 2. The inventory value will not match to G/L

in concrete words, item cost means UNIT COST of item (seen in Item Card - Inventory; Unit Cost)? and Inventory Value you mean is Inventory Valuation & Inventory Valuation - Cost Spec. , don't you?
with these behaviour, I have an opinion that it may cause uncontrolled entries to GL - which we might not want it to be modified or posted? Please share what do you think on this?

As muksha's point, f.g. will go negative - can you drill this, how can it be? sorry I can not get the idea.

all your opinions are really helping me ... thank you!

Alex_Chow

I highly recommend running ACIE and let NAV do the "uncontrolled entries to G/L". There were some quirks in costing in versions before 4.0, but all that has been address now. These uncontrolled entries are more than likely the correct entries.

You can also not run ACIE, and adjust it manually using G/L entries at your discretion.

Not only on the item cost on the item card, but also what NAV uses as the expected cost. If you never run ACIE, it means that the unit cost on the item card will not be updated to reflect the actual cost. So when you make a sales order, the COGS will be posted based on whatever your current unit cost is, which is not accurate.