Inventory Valuation

LarKan

We have a problem with inventory valuation:
shipment in 2009
sale invoice in 2010

Posting a sale invoice and executing the "Adjustv Cost - Iten Entries" report the system creates 2 value entries:
1 - one to balance to zero the Expected value (of the shipment), with the posting date of invoice
2 - one to fill the Actual vaue column, with the posting date of the shipment

Executing the report "Inventory valuation" we have stock zero as quantity and a negative value.

Example:
- Receipt/Purchase invoice 2009: 100 unit / actual unit value 17 --> Cost actual for purchase + 1700
- Shipment 2009: 100 unit / expected value -1700 / actual value -1700
- Sale invoice 2010: expected value + 1700

-->> 31/12/2009: stock zero and value -1700. We have a right value only executing the report with today date.
How can we have a correct value at 31/12/2009?

We use NAV 4.0 SP3 French Version.

Thanks to everybody

bstoyano

hI,
In the Inventory Valuation report there is an option for expected costs (a checkbox in tab Options > Include Expected Cost). If you switch it on, it will include the expected cost in the value calculation. Also make sure that Adjust cost - item entries batch job had been run.

LarKan

Hi, thanks for the replay.

I run Adjust Cost - Item entry just before running the report.
But the problem is precisely when I switch the Include Expected Cost checkbox. Infact at the shipment date I have both expected and actual (doubling the value), while the reverse is at the sales invoice posting date (that is after the shipment date).

bstoyano

Well, that sounds a little strange to me. When you post a shipment it records CostAmountExpected to ValueEntry. Posting shipment is not supposed to write in CostAmountActual.

What you should have in the ValueEntry for the sale is:
1. Shipment -> CAE = -1700; CAA = nothing
2. SalesInvoice -> CAE = +1700; CAA = -1700.

---

NET (ItemLedger): CAE = 0; CAA = -1700.

How about the purchase - did you post receipt & invoice at the same time? Is it possible that the problem arises from the purchase?

LarKan

You are right and what you say is exactly what I think it should happen, but the only way to obtain this result is to close the year 2009 so that the inventory adjs are posted in 2010 and not at the posting date of the shipment.
You know if closing the period is necessary to obtain this?
Grazie
Bye

bstoyano

hi,
As far as I remember in NAV 4 ACIE had a date, which is used as a posting date for the adjustment entries when adjusting entries with posting date outside the allowed period. So if you allow posting from 01.01.2010 to 31.01.2010 (in Financial Management > Setup > General Setup) and then run ACIE with posting date for closed-period entries 31.01.2010, then if ACIE is to adjust an entry with a posting date in December 2009, the adjustment entry will have 31.01.2010 as a posting date.
This is basically how ACIE works. If report Inventory Valuation aggregates Value Entries, then this might cause the situation you have. I advice you to look closely at the ILE and the value entries for the specific item that raised the issue and see which entry and when was created by ACIE and which is made by the post itself.