COGS

fahd

Hi Experts,

We have faced a major problem in 2014.

The cost adjustment was not ran for a long time it was last run around august 2014..Now auditors came and took the data of 2014.

after running the cost adjustment for remaining months of 2014. It is showing almost 4 million increase in COGS and company profit in the year 2014 is showing loss.

the reason i could see might be running the cost adjustment after a very long time.

is there a way that we could do something to figure it out?

Please advise!

Regards,

Fahad

bbrown

I highly doubt that issue is directly caused by the adjust cost process. Adjust Cost is not going to post different values just because it has not run for a long time. It will likely just take longer to run.

fahd

hi brown,

thanks alot for your reply and clearing my doubt on running it after long time.


could you please suggest what area should i check because the complete year 2014 is fine.

noticeable COGS increased only from september 2014 onwards till december.

october to november only increased by 3 million.

please advice.

Regards,
fahad

bbrown

You're dealing with a financial or operational reconciliation problem, not a technical problem. At least you have no evidence of a technical problem yet. You should start be identifying some items (and individual transactions) where the COGS seems to be much different from what you'd expect. Then determine what the COGS should have been based on other information sources. Next trace the transaction thru NAV to find why the system produced a different result. Yes, not a small task.

I don't know your role, but if you are not familiar with how NAV processed inventory costing and what can impact it, you need to involve someone that is.