How to Create G/L Entries when Finishing a Production Order

Sheina · 2006-08-14

We use Standard Costing to value all of our inventory. We recently upgraded from v2.6 to 4.0sp1. We had turned automatic cost posting and expected cost posting on. With this setup we found that no G/L entries were being posted when we finished production orders.

We then changed the automatic cost posting from Never to Always. Now when we post consumption, sales invoices or any other inventory post it appears as if Navision goes back and adjusts all entries in the system.

I did a test, all item ledgers and item cards had Cost is Adjusted = No.

I tried to consume 2 parts against a Released Order and while in Debug, I noticed that the code was trying to revalue all work orders (release and or finished) that had ever used these parts.

Because we use standard cost, we reset our standards on an annual basis, we do not want to revalue entries of any time period we just want to value the production order that we are finishing.

Does anyone know how to do the inventory set up so that we can do this without revaluing everytime we post inventory.

Thank you

johnson_alonso · 2006-08-15

I guess it maybe bugs. But I will suggest you must do these steps:
1. When change status from release to finish put a check in the update
unit cost field.
2. You have had costing method standard but beforehand you didn't check
auto cost and expected cost posting and also auto cost adjustment
select never and then to always, because of this, try to run adjust cost-
item entries then preview post inventory cost to G/L (financial mgt -
inventory - costing)

I've just done that to test your problem in my database, and it works good.After I finished production order and check value entries the field cost posted to G/L was empty but after conducted step 2, it is filled auto.

Rgds,
Johnson

Sheina · 2006-08-15

I have tried to run the adjust cost -item entries and it ran for in excess of 24 hours and created more than 1 million G/L entries, none of which were correct.

In version 2.6 we never ran the adjust item cost batch job as we used standard cost and it was not required.

I just want to be able to post entries & calculate variance at time of finish. I do not want to adjust prior transactions.

Thx.
Sheina

johnson_alonso · 2006-08-16

You should read manufacturing costing 4.0 manual, explaining about adjust cost item entries if you don't use automatic cost adjustment in inventory set up and also explaining about how production order is invoiced when you run batch job adjust cost item entries.

you wrote:

Does anyone know how to do the inventory set up so that we can do this without revaluing everytime we post inventory.

Invoicing of production order take place when the adjust cost-item entries batch job is run and inventory costs must reconciled inventory entries and GL by using post iventory cost to G/L. This must be done only if
you don't select always in automatic cost adjustment and expected cost posting and automatic cost posting is not checked. If you do reversely, your question is answered.

Rgds,
Johnson

johnson_alonso · 2006-08-16

You should read manufacturing costing 4.0 manual, explaining about adjust cost item entries if you don't use automatic cost adjustment in inventory set up and also explaining about how production order is invoiced when you run batch job adjust cost item entries.

you wrote:

Does anyone know how to do the inventory set up so that we can do this without revaluing everytime we post inventory.

Invoicing of production order take place when the adjust cost-item entries batch job is run and inventory costs must reconciled inventory entries and GL by using post iventory cost to G/L. This must be done only if
you don't select always in automatic cost adjustment and expected cost posting and automatic cost posting is not checked. If you do reversely, your question is answered.

Rgds,
Johnson

How to Create G/L Entries when Finishing a Production Order

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