Question on ACIE

dkgarden
dkgarden Member Posts: 38
edited 2011-08-11 in NAV/Navision Classic Client
I have this scenario where all this while user never adjust the COGS and never post inventory to G/L. What usually the user did was manually they will key in a journal in G/L to adjust back the COGS & Inventory every end of the month.

What is the procedure in this scenario for me to setup Automatic posting for all item?

Is this the process I should do?

1. Check Automatic posting
2. Set Automatic Cost Adjustment to ALWAYS
3. Run ACIE
4. Create journal entries to reverse out those G/L entries as user has previously manually entered the journal.
5. Use revaluation journal to key in back the Cost ? (do I need this step).

Please enlighten me. Thanks.

Comments

  • geronimo
    geronimo Member Posts: 90
    the scenario i usually follow is:

    1)take a backup
    2)run inventory valuation report for values
    3)set automatic cost adjustment to always
    4)run the report Adjust Cost - Item Entries
    5)post inventory to G/L report
    6)check automatic posting
    7)Undo postings to GL that were manually entered
    8)check G/L account to see if values match

    Do check that no one is posting in between step 5 and 6.
  • dkgarden
    dkgarden Member Posts: 38
    HI geronimo,

    Thanks for your precious replied. I was testing the ACIE just now and just realized another thing that need your advise.

    Since all item cost has never been adjusted before using the ACIE (As finance will adjust it manually every end of the month before closing). If i were to run the ACIE, it will generate value entries as per the original posting date which should not be allowed since the period has been closed. How can i handle this?
  • geronimo
    geronimo Member Posts: 90
    dkgarden wrote:
    HI geronimo,

    Thanks for your precious replied. I was testing the ACIE just now and just realized another thing that need your advise.

    Since all item cost has never been adjusted before using the ACIE (As finance will adjust it manually every end of the month before closing). If i were to run the ACIE, it will generate value entries as per the original posting date which should not be allowed since the period has been closed. How can i handle this?

    it will indeed generate value entries on the original posting date and afaik there isn't much that can be done about it (at least standard). So i'm afraid i'm not a big help there.
    the same is true for posting the inventory to G/L as there the date for the value entries is used as well for posting. Maybe someone else knows more about this and can enlighten us both on it.
  • dkgarden
    dkgarden Member Posts: 38
    I was thinking can i do it this way?

    Lets said now is August already and my July account was closed. I set the Allow posting From and to in between 1/8/11 - 31/8/11 only. When i run the adjust cost item entries, the closed period entry posting date i put in 1/8/11, hence all the adjusted entries (some goes back to 2007) will fall under 1/8/11. From here, i can find back all adjusted entries and do a manual journal to reverse out the entries. I tested it this way and it seems to work fine but i am not sure what is other concern i might left out...
  • geronimo
    geronimo Member Posts: 90
    seems i learned something again :) Thanks

    But why reversing the ledger entries made? if you reverse the manual postings done by finance so far the stock values should match up.
  • dkgarden
    dkgarden Member Posts: 38
    Because my July account was closed and i am not suppose to post any reverse entry on my manual postings. Well, at least that's what i thought....not sure it is right..lol..
  • geronimo
    geronimo Member Posts: 90
    shouldn't you just post back the previous value and let the automatic posted value stay?

    for example:
    there was a value at the end of july of 100000 at the account

    now you post the inventory in august and it goes to 201000 for example. Shouldnt you just reverse the original 100000 as the new postings are correctly matched to your actual inventory value

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