Changing Costing Method Issues

supp85

Hello All,

I understand that the correct way of changing the costing method is to rename the item and create a new one, however if we were to just use the existing item and journal out the items change costing journal them back in what exactly are the implecations of doing this? A lot threads say you shouldn't do this but i cant find any that give reason to why not? I understand that there may be rounding issue's but is this all?

ahed4

You actually can change it. I've done this a couple of times. The problem is: You must but be aware that your change does affect *only* new postings, since NAV will apply each entry instantly when it's posted using the current method. This results in a mixed situation where every entry up to now is - say - FIFO and all entries from now on are - say - LIFO.
If you would change it *completely* on every single entry you will have to unapply every single entry and reapply it. You need to write some sort of batch that deletes the Item Application Entries and resets the item ledger entries. And then restarts and uses the AppyItemLedgEntry function from CU22 to reapply them. Dangerous business!
Or since NAV 5 (or 4?) you can use the item application worksheet, but you'll have to do it manually.

Alex_Chow

The danger is that your old costing information may be factored into the cost calculation for new items.