Why we run Adjust Item-Cost Entries?

chandrurec

Hi all,

I want to know why we run Item-Cost Entries batch job in Navision.

If anyone know the exact use of why we run the above mentioned batch job, Kindly let me know.

Thanks in advance.

Regards,
Chandru.

Savatage

Adjust Cost - Item Entries Batch Job
This batch job adjusts value entries so that you use the correct adjusted cost for updating the general ledger with the Post Inventory Cost to G/L batch job. You find the Adjust Cost - Item Entries batch job by clicking Main Menu, Inventory, Periodic Activities.

The batch job processes only value entries that have not yet been adjusted. You must enter a posting date for the postings of the batch job. Entries created by the batch job will get this posting date.

The costing method on each item card determines how the program calculates the adjustment. You can read more about costing methods under Costing Method.

The batch job does not update the general ledger automatically. You must run the Post Inventory Cost to G/L batch job, which you find under Main Menu, Inventory, Periodic Activities.

chandrurec

Hi Savatage,

Can you give me a scenario so that I can check how the Adjust Item-Cost Entries work before and after running it.

Thanks in advance.

Regards,
Chandru.

Savatage

many times when we purchase goods the invoice arrives a week or two later.
so if we sell some before we get the inv the cist is wht we have in the computer at the time.
when the invoice arrives and we post it the actual cost can be different.

the batch job will run thru the entries and corrects the cost.

Hope i didn't overly simplify this but I hope you understand what i'm getting at.

Andwian

It is used to:
1. Calculate the Cost Amount for the Costing Method Average.
2. It will correct (update) the related Outbound Entries (Sales, etc.) because of the updated Inbound Entries.

Scenario:
1. Use item with Costing Method: Average
2. Inventory Setup: Average Costing Method Calculation: Daily
3. Post Receipt on 09/03/10, 1 PCS, Unit Cost $10
4. Post Shipment on the same date, 1 PCS, check the Cost Amount in Item Ledger Entries, it will show $1.
5. Post Receipt on the same date, 1 PCS, Unit Cost $20
6. check the Cost Amount in Shipment Item Ledger Entries, it still show $1, while we expect that it will be $15.
7. Run the Adjust Cost-Item Entries batch job
8. Check the Cost Amount again.

bbrown

It also flushes WIP for production orders with Finished status.

Andwian

It can also correct the Cost Amount used by Shipment, when the Inbound Cost Amount is updated using the revaluation or Charge (Item).
Second scenario:
1. Post Receipt, $1, 1 PCS
2. Post Shipment, 1 PCS, the Cost Amount will be $1
3. Charge the Receipt, $2, so that the Cost Amount of the receipt become $3
4. Check the Shipment Cost Amount, it is still $1
5. Run the ACIE batch job, and see the difference.

Kowa

Andwian wrote:

1. Calculate the Cost Amount for the Costing Method Average.

More than that, it calculates the cost amount for all costing methods.
An example for FIFO here.