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[Samuel Champoux]

Hi,

It seems in NAV (both 2013 and 2018), users can do Item Journals and change the unit cost of the adjustment.
So you could have qty 5 with value 5000, and then do an item journal with qty -1 and 4000 unit cost, you would be left with an inventory of 4 with a total value of 1000?

Do you usually block this? How do you control inventory value when this is possible?

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Samuel Champoux
IT Director
Drummondville QC Canada
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[Franz Kalchmair]

did you run “adjust cost – item entries”. do you get the same (calculated) unit cost after that?

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Franz Kalchmair
Microsoft MVP
Senior Consultant
Austria, Europe
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[Adam Aponte]

Hi Samuel, 

If your concern is that users can modify the unit cost on the item journal screen, why not just remove the unit cost column entirely? Maybe I’m being to simplistic and misunderstood your question but that was my first thought. 

Now if you don’t want to remove the unit cost column for informational purposes, then making the field non editable would be custom.

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Adam Aponte
NAV Support Tech
Zefon International
Ocala FL
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[Samuel Champoux]

Yes if I hide the field or make it non-editable it would prevent them, but that wasn’t really my question.

I was wondering how people here used that field, or if they blocked it or audit it some other way.

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Samuel Champoux
IT Director
Drummondville QC Canada
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[Kevin Fons]

Some users adjust the Unit Cost to the correct/actual cost of the material they are adjusting in for positive adjustments.  We see it used quite frequently.

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Kevin Fons
Senior Application Consultant
Innovia Consulting
Windsor WI
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[Andrew Rutledge]

In response to the comment above, I’ve found that the revaluation journal works much better for correcting item costs in NAV. It keeps me from having to make multiple positive and negative entries to achieve an accurate cost for an item. That’s not really the main intention for the item journal.

I also believe that the unit cost field in the item journal affects your system differently depending on what kind of costing method you use.

Our company uses average costing for all of our items. From experience, I know that when I make a negative item adjustment and change the unit cost field, NAV will still use the “true” average cost when making the entry no matter what I’ve put in that field. If I bring in inventory with a positive adjustment, the unit cost can be over-ridden and the system will revalue the total value. I’m pretty sure that’s been the way the item journal works for me in terms of costing, but just wanted to comment on my experience a little bit.

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Andrew Rutledge
Staff Accountant
Marine Ingredients
Mount Bethel PA
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[Jenny Hollingsworth]

In the item journal, if the entry type is positive adjustment, the unit cost is used to value the quantity you are putting back into inventory.  If the entry type is negative adjustment, then it really doesn’t matter what the unit cost is, once adjust cost item entries is ran it will apply the cost of whichever positive item ledger entry the negative adjustment applied to.  I noticed in your question you said a -1, i assume you are referring to a negative adjustment.  Make sure the users are not leaving the entry type of positive adjustment and then entering a -1, i do not know ignorance that is what is happening or not.

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Jenny Hollingsworth
Sr. Application Consultant
Innovia Consulting
West Bend WI
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[Samuel Champoux]

?Is there a difference between a negative adjustment of 1 and a positive adjustment of -1?

We were going to remove the neagtive adjustment and rename the positive one “Adjustment”, because people were confused and were putting negatives in negative adjustments, causing positive adjustments instead…

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Samuel Champoux
IT Director
Drummondville QC Canada
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