G/L Impact due to revaluation

melsadek

Hi there,

One of our customers is asking for a breakdown of what G/L accounts are impacted when a revaluation journal entry is posted. Specifically, they are looking for the T ledger breakdown when the following occurs:

1) Revaluation of a Raw Material (Average costing method) resulting in an increase in value on hand
2) Running cost adjustment on said Raw Material AFTER revaluation occurs
3) Running cost adjustment on the Finished Good the Raw Material is a component of. The Finished Good can be in any of three different streams: In WIP, In final inventory, or sold.

I have a good grasp of the general impact, but I'm not an accountant. Any help regarding the above, or pointing me to material that address it, would be appreciated.

Regards,

Mohamad

jglathe

Hi Mohamad,

that's a good question. Let's try:

Revaluation in general is posted as inventory against inventory adjustment. The accounts are set up in the inventory posting setup (combination of location and inventory posting group) and in the posting setup (combination of general business posting group (usually empty for inventory-only transactions and production) and gen product posting group).

You can assemble a complete list of cases from Codeunit 5802 "Inventory Posting To G/L". For the adjustments, though, you need to consider direct cost, indirect cost, and rounding. Could be complicated to generate a T ledger breakdown for a complex case. That's why it took around 10 years (or so) to get it debugged to an acceptable level of errors

with best regards

Jens