Changing costing metod

bostjanl
bostjanl Member Posts: 107
edited 2004-12-31 in Navision Attain
Heja!

Costumer wants to change costing metod form Average to FIFO. Does anybody have any expiriance with this?

This change is planed at th end of the year.

My plan is:
1. Create Item journal to negative adjust all inventory (and create a copy as positive adjustment). One line per item & location combination. Maybe also per document no. Not sure about that yet. Item cost is average item cost which will be also used when positive adjust items.
2. Post item journal. All item inventory to 0.
3. Run Adjust Cost - Item entries.
4. Post Inventory cost to G/L.
5. Change costing metod for all item to FIFO.
6. Run second item journal with positive adjustment. Item cost is average cost of negative adjust item.

Open questions:
-What to do with items on orders which are shipped/received but not invoced completly?
-What to do with items, on which some item charges must be posted?

BostjanL

Comments

  • eromein
    eromein Member Posts: 589
    Sounds good...

    Did you test this?
    "Real programmers don't comment their code.
    If it was hard to write, it should be hard to understand."
  • bostjanl
    bostjanl Member Posts: 107
    eromein wrote:
    Sounds good...

    Did you test this?

    Didn't test it. Didn't even code it yet. Plan to do that later this week.

    But I would like to get some feedback, if any of you outthere incountered someting like that.

    BostjanL
  • Jelias1
    Jelias1 Member Posts: 35
    Wheneer I change costing methods I do a complete physical inventory. This should help alleviate your open issues.
  • bostjanl
    bostjanl Member Posts: 107
    Jelias1 wrote:
    Wheneer I change costing methods I do a complete physical inventory. This should help alleviate your open issues.

    Sorry, but I don't get it, how could PI help solving my problem with shipped/received but not completly invoced orderds. Could yoiu explain more? :?:

    Customer had PI last month so number should be OK. If not it will be on next PI on Noveber 2005 :wink:

    BostjanL
  • chaswin
    chaswin Member Posts: 54
    I think it would be advisable to ensure that there were no outstanding GRN's at the time of the conversion. Also no outstanding shipments (if you use them).

    You also should ensure that there are no new postings back into a date prior to the conversion date. With the calculation of a daily average cost, I'm not sure what the effect would be! Probably a good idea to set your overall GL posting dates (and user dates if used) to enforce this rule.

    Biggest risk is that the periodic runs decide that a transaction prior to the conversion needs adjustment. This could cause a few problems if it happens.

    If you use manufacturing, there might be other implications.
  • jungleboy
    jungleboy Member Posts: 48
    But I think system won't allow you to change the costing method as long as there are entries in item ledger entry table.
    May ask your client to block those old item and re-create a new item code with new costing method. Or else they have to reimplement the inventory module.
  • chaswin
    chaswin Member Posts: 54
    Quite correct, but its easy to doctor the Item Ledger Entry table code to allow the change. We have done it in the past when there was only a single table. The arrival of the Value entries makes it all a bit more complicted in respect of ensuring that the item and value entries already posted never get changed after the conversion.

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