Inventory adjustment with Transfers

Akio

Hello everybody,

I have a problem when I run report 795, Adjust Cost - Item Entries and it adjusts transfers.

All items have Average Costing Method, and all items have defined Stockkeeping units to separate the average cost by location.

We make a transfer of quantity=1. The shipment transfer gets the cost of stockkeeping unit for that source location (for example, cost 2) and the transfer receipt gets the cost of the SKU for the item in the destination location (for example, cost 5). This behaviour is ok for our current environment.

The problem is that when the inventory adjustment codeunit finds the "value entries" of the transfer, it creates a new value entry line that cancels the value entry of cost 5:

TRANFER (without Transit Location Lines):
17/07/09|Transfer|Direct Cost|No|Transfer Shipment|WHSH-1|LOC1|0,00|0,00|-2,00|0,00|0,00|-1|-1|-1|1,00|0,00|ITEM1
17/07/09|Transfer|Direct Cost|No|Transfer Receipt |WHRE-1|LOC2|0,00|0,00|5|0,00|0,00|1|1|1|5|ITEM1
17/07/09|Transfer|Direct Cost|Yes|Transfer Receipt|WHRE-1|LOC2|0,00|0,00|-3|0,00|0,00|0|1|0|-3|0,00|ITEM1

Shipment -2 and Receipt 5-3.

I have seen in the documentation that report 795 adjusts average-transfers to make source-cost and destination-cost equal. Is there any parameter to avoid this behaviour so that the process doesn't modify these value entries?

Thanks in advance.

nunomaia

This is the way costing routine works. I don’t see any way to get around this since item costing must equal otherwise you could get strange values.

ara3n

why do you want to avoid this behavior?

Akio

Hi,

In our database, some of the locations have a boolean field that defines location without cost. For example, items that have to be repaired, go to a location without cost, and if they are repaired then they go back to a location with cost (taking the average cost of the SKU of the item).

These changes of location are made by using Transfer Orders. When we transfer items from a location without cost (for example, REPAIR) to a location with cost (for example,SALES) we put the average cost of the SKU in Transfer receipt.

But when we run the "Adjust Cost - Item Entries", it changes the cost of the transfer receipt. This behaviour is the one we would like to avoid.

I may uncheck the "Cost Application" boolean field of T339 just in the Average Transfer in CDU 22, but I'm not sure if this change may affect other costing processes.

Thanks.

ara3n

Do not tinker with any costing fields. You'll screw up your costing.

Instead create another item and do negative adjustment to your existing item and positive REPAIR Item.

Once the item is repaired, do the reverse and enter the correct cost for the item.

Transfer entries will always have equal cost on inbound and outbound.