Inventory in additional currency

pvar

I am trying to understand the process to true up the inventory value in additional currency between general ledger & inventory sub ledger. If I run the process to adjust exchange rate (report 595) for a date, it seems to update additional currency in g/l, customer, vendor & bank ledgers but not inventory sub-ledger, value entry. So the additional currency in value entry will be different from g/l after the adjustment. Is that the way NAV works or is there any other process to make those equal?

jglathe

Hi,

pvar wrote:

If I run the process to adjust exchange rate (report 595) for a date, it seems to update additional currency in g/l, customer, vendor & bank ledgers but not inventory sub-ledger, value entry.

Yes.

pvar wrote:

Is that the way NAV works or is there any other process to make those equal?

Yes, that's how NAV works. Unfortunately, I don't know of a solution to adjust both ACY in value entries and in the G/L. The way to implement this would involve a rewrite of the adjust exchange rate batch.
There is a possible workaround, though: you could change the ACY in the G/L setup to something else and set it back to the desired code again... then all ACY amounts will be recalculated. I would suggest to try this out on a test database, though.

with best regards

Jens

pvar

Thanks Jens. So other than modifying the adjust exchange rate process there is no way! I do not like the work around to change the ACY on g/l setup to make it equal because it's not practical to do that every time you run adjust exchange rate, it's a long process that takes hours and updates multiple tables.

I am still curious to know how a multicurrency NAV install would handle this situation when reporting in additional currency is needed and inventory sub-ledger doesn't match with g/l?

jglathe

Hi,

pvar wrote:

I am still curious to know how a multicurrency NAV install would handle this situation when reporting in additional currency is needed and inventory sub-ledger doesn't match with g/l?

me too :-k I have taken a look into the newer NAV releases: no Value Entry Adjustment in NAV2013 (R2), either. To implement this you could go several ways:

1. Adjustment for every Item Ledger Entry, by adding a new "Revaluation" entry only in ACY with the difference - then do the G/L posting over the "Post Value Entry to G/L" table. This would obviously create the most entries, but it would be nicely auditable. The G/L accounts for inventory (all named in the inventory posting groups) need to be excluded from the normal adjustment to avoid double adjustment.

2. Adjust every Value Entry by recalculating the ACY amount. Post the resulting amounts on the G/L side like it's done for the VAT Entry adjustment. Creates less entries, not really auditable. Has the advantage that we don't create additional Value Entries that could upset other parts of the inventory posting logic.

If I would have to choose, I'd select variant 1. This would also work with true multi-currency entries, or items held in a trading currency.

with best regards

Jens