Issue Inventory Costing Issues
Solution What not to do, to not to end on costing method GIGO.

Do not post -ve quantity from Purchase or Sales Line. Use credit memo or return orders instead.

If still user wants to do that, advise to use Move Negative lines this will create above mentioned documents for that.

If still have doubt on Purchase Order, Invoice, Credit Memo and Return Order form. Set the property min quantity as 0 on field quantity. It can be done on table as well but then Move negative lines may not work.

We cannot make this sure but advise user to always post invoice on a date late than the receipt date or shipment date.

Reasons for having 0 quantity and some inventory value on Inventory Valuation report are:

Scenario 1:

If the adjust cost is processed on 7/31/07, and the AllowPosting From was 7/1/07 on General Ledger Setup, the following would occur:

 

6/15/07 - Purchase Receipt - $10 

6/28/07 - Ship and Invoice - $10 

7/15/07 - Purchase Invoice - $12

7/31/07 - Additional Cost for the sale made on 6/28/07 -$2

 

In this case, when you print the inventory valuation as of 6/30/07, the inventory quantity would be 0 and the inventory value would be 0.

 

Scenario 2:

If the adjust cost is processed on 7/31/07, and the AllowPosting From was 6/1/07 on General Ledger Setup, the following would occur:

 

6/15/07 - Purchase Receipt - $10 

6/28/07 - Ship and Invoice - $10 

7/15/07 - Purchase Invoice - $12

6/28/07 - Additional Cost for the sale made on 6/28/07 -$2

 

In this case, when you print the inventory valuation as of 6/30/07, the inventory quantity would be 0 and the inventory value would be-$2.00. 

 

Explanation

Navision will automatically post the additional cost to the original invoicing entry because that's where the cost originally applies to. If Navision detects that the Allow Posting From is before the adjusting date, then it will use whatever the Posting Date is when the adjust cost isran.

 

Scenario 3:

If the adjust cost is processed on 8/31/07, and the AllowPosting From was 7/1/07 on General Ledger Setup, the following would occur:

 

6/15/07 - Purchase Receipt - $10 

6/28/07 - Ship and Invoice - $10 

7/15/07 - Purchase Invoice - $12

8/31/07 - Additional Cost for the sale made on 6/28/07 -$2

 

In this case, when you print the inventory valuation as of 6/30/07, the inventory quantity would be 0 and the inventory value would be0. When you print the inventory valuation as of 7/31/07, the inventory quantity would be 0, but the inventory value would be $2.00.

 

Explanation

Navision will automatically post the additional cost to the original invoicing entry because that's where the cost originally applies to. If Navision detects that the Allow Posting From is before the adjusting date, then it will use whatever the Posting Date is when the adjust cost is ran. In this example, since the Adjust Cost process posting date is 8/31/07, it will use this date as the Posting Date for the adjusting entry.