Wrong Average Cost

cavalcanti_space

All,

We have an issue with the cost in Navision.
The cost is set to average, per day and per location.
Navision was implemented in the company in 2009. Till 2010 they did not have a look on the cost at all. In 2011 we started checking it. We see the cost in 2009 was wrong for many items. I want to find out if is possible to change the way Navision calculate the average cost. I mean it must see only the value entries from 2011 on. We started running the Post inventory cost to G/L in 2011 so we will not post the entries before 2011. I neither want to delete the item ledger and value entries nor revalue then cos there are loads. Do you guys know another solution?

Cheers,

Edson

ara3n

Invoice anything that you have received or shipped. If you have production orders consumed. Post the output. Basically don't have any partial transaction open.

Then create two physical journal Zero out inventory. Run adjust cost. Run Inventory valuation and you should have zero on hand and value. Then Post the new physical inventory on next day.

cavalcanti_space

Hi Aran,

I have already done that, but it did no work. If I do a positive adjustment on next day the the cost entered on unit cost will be wrong cos my cost is wrong in the past and there are some items with zero quantity so i cannot do anything with then so the cost for those items will still be wrong.

ara3n

when you do the second adjustment. You need to specify what the cost is.

Cost is determined by inbound transaction. Your past will not affect the cost because past cost will be zero.

Alex_Chow

What version of NAV are you using?

There's a bug in 5.0 and prior where the average cost will not calculate correctly if you appy item charge to drop ship orders.

cavalcanti_space

We are using Nav 5.0 SP1.
We neither use item charges nor production orders.
The problem we face is that we had negative inventory in the past. There are some itens coming out with average cost zero.
Some of them have no quantities at all, but if I receive the same item as the correct average cost the total average cost for that item will sitll be wrong because it will look back at the value entries in the past.I have already done what Aran suggested but there are itens with zero quantities wich are stil causing me problems. Please see the exmaple below.

ara3n

Which report is this?

You mentioned that you don't want history affect your present and future costs.

If this is a custom report, it probably is not calculating avg cost correctly.

Alex_Chow

I think this is a localization report. I've seen this before somewhere...