inventory setup questions

cveale

I have some inventory setup questions when it comes to average costing. Specifically these fields.

Automatic Cost Posting.

Automatic Cost Adjustment

and Average Cost Period.


Now, the Automatic Cost Adjustment field only matters if the Automatic Cost Posting is turned on correct ?

Also, let's say I post some inventory increases.
+10 in jan.
+10 in feb
+10 in march.

now its July and I post a Sales Invoice for -15. In NAV, any decreses get applied against any increases. but how far back does NAV go ? Is that what the Automatic Cost Adjustment field is for ? To determine how far back to apply my decrease to my increase ?

GRIZZLY

If Automatic Cost Adjustment turned on, then a Cost Adjustment job starts when you post item transactions. The cost in transaction would be actual in that case. Otherwise you should periodically launch job for cost adjustment.
If Automatic Cost Posting is turned on, then a G/L transaction would be posted every time you increase|decrease|adjust cost.

When you post an inventory decreasing transaction it applies to first (by posting date) open increasing operation. The cost for decreasing operation for average cose is calculated like : summ of cost of inventory on stock / quantity of inventory on stock (an expected cost could be also included).

cveale

Grizzly, first off, thanks your getting back to me. A few more questions for you. How far does NAV go back to apply a decrease to an increase ? Does it only look to the current fiscal year ? Or if there is open positive ILE from a previous year, will the decrease go and and apply against the + from a previous year ? Or does it only look to the currect fiscal year ?

What if I have Automatic Cost Posting turned on, and Automatic Cost Adjustment set to 'Never'.

Will this only post the cost to the GL when I run the 'Adjust Cost Batch' routine ?

GRIZZLY

In application fiscal year is not making sense, it means that decrease can apply increase, which was posted 2 or more years ago...

If you set Automated Cost Posting and turn off Automatic Cost Adjustment, then cost would be automatically post on COGS account by an average cost (which comes from an Item Card, field Unit Cost). But if you would post some increase, which comes some time ago, the cost wouldn't be automaticaly adjusted and, of course, it wouldn't be posted on COGS account.
When you run an adjustment batch routine then cost would be adjusted (Value Ledger Entries) and posted (G/L Ledger Entries).