Inventory Valuation

pvar

Hi,
I know there are many posts on this forum about this topic and I have looked into all those as well. Could any one please explain the main differences in the logic in which the inventory is valued between versions 3.6 and 4.0? I am talking about report 10139.

The reason is I am seeing a number of items with zero remaining qty but with some inventory value(either positive or negative). 3.6 version sums up only non-zero qty transactions whereas 4.0 version sums up every transactions so obviously the output I get from the 2 versions differ.

I would think 4.0 version will be valuaing the inventory better than 3.6 but is that the case in every scenario?

Thanks for looking into this.

Alex_Chow

http://dynamicsuser.net/blogs/alexchow/ ... n-5-0.aspx

Take a look at this to see why you have inventory value with 0 quantites.

pvar

I did see this document before. A couple of questions.

1. Does this applies to version 3.6?
2. By changing the Allow posting from to a date way back and run adjust cost routine will fix the costs?

Thanks

Alex_Chow

pvar wrote:

I did see this document before. A couple of questions.

1. Does this applies to version 3.6?
2. By changing the Allow posting from to a date way back and run adjust cost routine will fix the costs?

Thanks

No, this applies to version 3.7b forward. Version 3.6 behaves differently.

No, once the adjust cost is ran, its locked in stone. The document is intended to explain the situation, and allow you to explain it in plainer english to management and auditors. Ultimately, the users can note the seriousness of changing the allow posting from when running adjust cost process.

pvar

I can see that 3.6 version doesn''t consider the zero qty transactions in the valuation but version 4.0 does.

But what I am trying to understand is an inventory value with zero qty is legitimate and it might have happened because you didn't run the adjust cost routine timely, Is that a fair statement?

Alex_Chow

pvar wrote:

But what I am trying to understand is an inventory value with zero qty is legitimate and it might have happened because you didn't run the adjust cost routine timely, Is that a fair statement?

Not exactly, but for most cases, yes, the statement is correct. (The key word is MIGHT).

pvar

Ok, then let me ask you this.

1. How often do you need to run that routine?
2. If you have some cost issues like this how do you fix it? or you just live with that?

Alex_Chow

pvar wrote:

Ok, then let me ask you this.

1. How often do you need to run that routine?
2. If you have some cost issues like this how do you fix it? or you just live with that?

1. I recommend clients to run it at least once a month, or once every reporting period.
2. In most cases, clients just lives with it and taught to be more careful next time when running ACIE. In more sever cases where multiple auditors are involved, there are ways... But it's not recommended...