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Costing Method Change

kwajahathydrokwajahathydro Member Posts: 88
Hi,

We are involving our vendor who implemented Navision at our end. Currently we are using Avg Unit Cost as Costing Method. We are having issues with Avg Unit Cost keeps changing from time to time and also we dont know why system creates adjustment entries and because of this we have decided to use Costing Method as FIFO.

We are in talks with our Auditors as it is important to involve them and also our vendor is studying the impact it will have to move from Avg Unit Cost to FIFO. My question is after we go live with Costing Method as FIFO do we have to run Adjust Cost Item Entries again in Navision. Our thinking is with costing method FIFO, we want to eliminate adjust cost item entries situation! Is our thinking right or not

Regards
KH

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    jglathejglathe Member Posts: 639
    Hi,

    you need to run ACIE periodically, regardless of your costing method. It distributes newly invoiced costs to all linked item ledger entries. This includes all changes to cost amount (actual), regardles of the cause.

    To change the costing method on existing items there is a tool: https://www.impuls-solutions.com/Pages/1048.aspx

    with best regards

    Jens
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    kwajahathydrokwajahathydro Member Posts: 88
    Hi Jens,

    Thanks for your reply. Well i have looked at the link given by you and i guess its a customized program that has been developed by IMPLUS. I can write an mail to them and get more info about it but if you say that we still have to run adjust cost item entries even though we are going to be on FIFO and if this is the case i am sure i can turn on the parameter of navision under inventory setup as Automatic Costing Posting Adjustments to be as Always! Any issues if i switch this parameter on!

    Regards
    KH
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    jglathejglathe Member Posts: 639
    Hi KH,
    ... though we are going to be on FIFO and if this is the case i am sure i can turn on the parameter of navision under inventory setup as Automatic Costing Posting Adjustments to be as Always! Any issues if i switch this parameter on!

    I'm afraid you need to run ACIE regardless, from time to time. Automatic Cost Posting Adjustments has a high impact on performance, too.

    with best regards

    Jens
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    dahlia94040dahlia94040 Member Posts: 33
    You should always run adjust cost. At least as part of your month end process. Whether or not there will be adjusting entries or how many there will be will be dependent on your Automatic Cost Adjustment & Automatic Cost Posting setup in your Inventory Setup. The more frequent the setting on Automatic Cost Adjustment is set to the more accurate it will be; however, this will also add overhead every time you post depending on how long you have been running NAV.

    If there are costs related to prior period that has not been adjusted NAV will post it to the first month of your open GL period (G/L setup).
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