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[Ruth Entwistle]

#NAV2017
?
We use average costing and I completely understand why we are getting 0 Quantity Items with a value (either positive or negative) in some of our warehouses.  Cost either gets left behind or transferred in excess of the original cost of the item. No problem there.

Question for you all is:  Is there a workaround to move the negative or positive value associated with the 0 inventory into the warehouse that has inventory? We’re talking $20, not a big value.  
I have tried in the test environment to 
1)  Item Journal- remove all inventory from all warehouses and then receive back into the warehouse it belongs in (still maintains the value in the  0 qty warehouse)
2) Item Journal- Add a quantity to the 0 quantity warehouse and then remove it (still maintains the value in the 0 qty warehouse)
3) Revaluation won’t work since that simply applies a new value to all current inventory
4) Selling the product- still maintains the values

I understand that the value is moving at the average cost, even if I change the cost in the item journal it does not affect the movement of inventory at the average.

Help! 

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Ruth Entwistle
Customs Broker/Vendor Relations
Heron Point Seafood
Newmarket NH
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[Jason Nicolaou]

Good day Ruth!  Long shot here, have you tried running the Adjust Cost – Item Entries function for each warehouse?  I am not sure how to recreate this scenario so I have not tested this one.  Please share how you fixed it when you get there.  Best of luck!

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Jason Nicolaou
Engagement Manager
Sikich, LLP
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[Ruth Entwistle]

Thanks for the advice! We have Automatic Cost Adjustment set up in our Inventory Setup so I don’t think running Adjust Cost does anything new? 

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Ruth Entwistle
Customs Broker/Vendor Relations
Heron Point Seafood
Newmarket NH
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[Andrew Good]

You are on the right track. I think that a couple of tweaks to your process should make it work.

1. Create a positive Item Journal for qty=1 with a value of $1, post
2. Run Adjust Cost – Item Entries (for good measure)
3. Create a negative Item Journal for qty=1 with a value = $1 plus the remaining value to be cleared, post
4. Run Adjust Cost – Item Entries again (for good measure)

Good luck!

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Andrew Good
President
Liberty Grove Software
Oakbrook Terrace IL
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[Ruth Entwistle]

Andrew- 
Thank you. 
So what happens when you do this is that it creates a positive (or negative) amount in the other warehouse to offset the amount in the current warehouse.
It goes from for example:
Warehouse A:  $300.00
Warehouse B: $-20.00

To 
Warehouse A: $20.00
Warehouse B: $-20.00

The value seems trapped in Warehouse B no matter what you do. 

Any more ideas? 

Thanks 

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Ruth Entwistle
Customs Broker/Vendor Relations
Heron Point Seafood
Newmarket NH
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[Kristina Frank]

Hi Ruth,

In Inventory Setup, there is a setting for Average cost Calc Type.  What is your selection?  We had this issue and discovered our setting was by item, which means average costing did not take into account cost by location.  We updated our Average cost Calc Type to by Item & Location & Variant and most of our issues cleared up.  Please note, the process to make the change involved a lot of testing and processing time.

Let me know if you have any questions.

Thank you,

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Kristina Frank
Controller
Cline Tool & Services
Newton IA
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[Ruth Entwistle]

Thanks Kristina Frank- we actually do want inventory to average across all locations.  We have it set to Item for that reason.  I’m just looking for an easy way to get value out of a location we are no longer using.  It is messing up the reports for the bank.  

Thanks!

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Ruth Entwistle
Customs Broker/Vendor Relations
Heron Point Seafood
Newmarket NH
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[Ted Johnston]

I don’t think there is a way as NAV thinks all the entries are correct and thus there is nothing to adjust. I go through this ever couple years with our controller.

As mentioned by Kristina, if you have inventory value by location (as you want), NAV does not try to make things balance by location. Unfortunately, you can’t have your cake and eat it too.

Two options:
1. Rework the offending report to calculate the average cost of the item as of the date of the report and multiply the average cost by qoh to get value. This will get you very close to balancing to the G/L and will not show the remainders you show above.

2. Better (but much harder) solution is to explain to everyone who is bothered by this why it happens so they are no longer bothered. Good luck with that.

Which option depends on who is using the report and why. If it is an accounting report to tie out to the G/L, you only have option 2. If it is an operational report, option 1 works great.

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Ted Johnston
IT Director
Streicher’s
Minneapolis MN
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[Kim Dallefeld]

Ruth, I had this once at an end user, we ended up editing our value entries to get the numbers we wanted. I know this isn’t the best method but we were hung as well. You might talk with your partner as Microsoft has some tools related to inventory that might have better solutions.

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Kim Dallefeld
Kim@Dallefeld.com
Dallefeld Consulting, LLC
Member of Dynamics Consulting Group
Ft. Worth, TX
2019 NAVUG Board of Advisors
Past NAVUG Board Chairman
NAVUG Programming Committee
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