Item has zero Quantity, but negative value

mel_sadek

Hi all,

We have a client that has a nasty case of "money out of thin air" with their inventory. Many of their items, although discontinued, have zero QOH but somehow have a negative value. In fact, this appears to be systemic, as this problem permeates throughout their inventory, to the tune of several thousands of dollars when all is said and done.

I've looked at all the threads pertaining to inventory valuation, and I've read Alex's famous "Why you have Negative Inventory Value with 0 Quantity – Navision 3.7b to Navision 5.0" page. While I understand what the problem could be (ACIE run on dates outside of the Posting From Date, etc...), I don't know of a SOLUTION to this issue. Previous colleagues tried to remedy this by creating positive and negative adjustment entries and then posting them. This works perfectly...of course until you run ACIE again. So these guys go through this vicious cycle every month end. I've run Revaluation Journals, in the hope that resetting the Unit Cost my fix it, but to no avail (unless I am doing something fundamentally wrong, or out of whack).

For example, When running the Inventory Valuation Report as of 09/01/09, Item #314 has ZERO Quantity on Hand, but an inventory value of -850.43 (we're not talking pennies here!)

I'll disclose any information that you may require in assisting me.

Please help. [-o<

kapil4dynamics

Not always posting from and to are responsible for this to happen.

It depends how chronological ur invoices and returns are posted and how chronological Sales and Purchase transactions are, so i think u need to investigate these as well.

mel_sadek

Kapil,

Well certainly the From Posting Date is "one" aspect of why things like this go wrong. But the fact remains that ACIE doesn't play nice, in the sense that it resets the item inventory value back to the negative value originally posted PRIOR to the positive and negative inventory adjustments...and that's what I don't get.

hari_hh

Could you check on a thread?? When negative adjs. were being posted, were they done without Unit Cost? Conversely, when +ve adjs. were done, did they have values attached? All the items are having this problem or isolated?

smkolsoft

Dear Sadek

Will u be able to send me the value entries of a particular item as of the
given date ur running Inventory Valuation report.
Please send following info

Posting date
Valuation date
Cost amout Actual
Qty
Invoiced Qty
from Value entry table

mel_sadek

hari_hh: I believe this is what was occurring:

Step 1: Post Positive Adjustment of Quantity = 1, Unit Cost = 850.43. This will result in an inventory valuation of Quantity = 1, Value = 0
Step 2: Post Negative Adjustment of Quantity - 1, Unit Cost = 0. This will result in an inventory valuation of Quantity = 0, Value = 0.

From what I gather not all items have this issue, and it's occurring mostly on items that were bought as "samples" - that is, they were acquired at ZERO cost, but somehow later on the company attached a dollar figure value to them. The details of this are a little sketchy, so I apologize.

smkolsoft: I will provide the value entries shortly.

Everyone, thanks for your help in advance.

Alex_Chow

This has been discussed already:

http://mibuso.com/blogs/alexchow/2007/1 ... vision-50/

mel_sadek

Here are the value entries requested. This is the entire list of value entries, with regards to this warehouse location (which is where it's being valued incorrectly).

The inventory Valuation is run on the As of Date of 09/09/09.

Finally, some data on the general inventor setup:

Automatic Cost Posting = TRUE
Expected Cost Posting = TRUE
Average Cost Calc. Type = Item
Automatic Cost Adjustment = Never -> Is this worrisome to you?

Sog

in the attached folder there is a negative adjustment of 1 qty but with 1700 LCY
while standard 1 item = 850 LCY

mel_sadek

Sog,

Yes that negative entry was part of an attempt on my behalf to reset the total inventory value, but it didn't work.

I'm still puzzled as to how to reset it back to 0 value for 0 quantity. Am I missing something here? Is there some cardinal rule of Navision that's I'm ignorantly breaking?