[Terry Dann]

Hi, My company management wants Accounting to hold open an inventory period for a week or more into the next month, while processing inventory transactions in the current month (so two inventory periods are open at once). We are CPA’s so this goes against any best practices and controls that we have ever established.  Does anyone out there do this?  What are the pros and cons and what reconciliation or audit issues has this caused?  hank you!

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Terry Dann
Young’s Holdings, Inc.
Aliso Viejo CA
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[Ken Sebahar]

There needs to be a clear plan for how/when access to each period will be blocked, but crossing over periods like in the example you provided is very common in BC.  Each entry that is posted is assigned a “Posting Date” and this is used to assign the date to Inventory and G/L entries.  When reports are run (like an Inventory Valuation or Aged Accounts Receivable”, the user can select as As Of Date and the reports can then re-produce the values as of the prior date.  And this can be any historical date, not just a month-end date.

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Ken Sebahar
Solution Systems, Inc.
ken@solsyst.com
Podcast: A Shot of Business Central and a Beer!
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[Lindsay Riggs]

Hi Terry, 

In NAV and/or BC, you can use the Posting Dates in the General Ledger Setup as the ‘umbrella’ posting dates for all users in the software. These dates also control the cost adjustment postings for items. 
You can use the User Setup posting dates to allow exceptions for certain users to be able to post outside of the posting dates in the GL Setup. 

If your company is truly using Inventory Periods in NAV/BC, then once it’s closed you can’t post into it any longer, so make sure you close it when you are actually ready

Inventory periods define a period of time in which you can post changes to inventory. An inventory period is defined by the date on which it ends, or the ending date. When you close an inventory period, you cannot post any changes to inventory, either expected or invoiced, before this ending date.

Thank you,

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Lindsay Riggs
Senior Manager, Microsoft Dynamics
MorganFranklin Consulting LLC
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