Dynamics F/SCM Customer Experience (CRM) Dynamics GP Dynamics Business Central (NAV) Dynamics SL Power Platform Fabric Copilot

[Bob Lash]

We maintain several “warehouses” on our GP systems for certain items.  When we accept some equipment in trade for new equipment, we “return” the inventory in a “warehouse” separate from the new inventory.  I was attempting to write off some of the old equipment that is non-functional at the reduced cost for that warehouse.  The transaction is pulling in the current cost from the new equipment warehouse.  The system will not allow me to assign the reduced cost of the old equipment.  I assigned the correct warehouse in the header for the batch so I assume that I wouldn’t need to enter the reduced cost anyways.  What am I missing on processing the adjustment (write-off)?

——————————
Bob Lash
General Manager
Ti-SALES, Inc.
Sudbury MA
——————————

[Matthew Arp]

You can’t specify the cost of a decreasing inventory adjustment. GP uses the cost of the inventory (based on the valuation method). When the inventory was ‘returned’ to the special warehouse, was the reduced cost used, or was it your normal cost for the item? If it was your normal cost, you should adjust your cost down to the reduced price, then when you adjust the item out GP will use this reduced cost. The cost that shows up in the user interface is not the cost that GP will actually use, GP determines that at the time of posting.

——————————
Matthew Arp
Business Systems Developer
Hunton Group
Houston TX
——————————
——————————————-

[Andrew Kennedy]

Bob,
GP does not track costs by warehouse.  Inventory will come out based on the costing method assigned to the item.  So, if you are using Average Perpetual then the cost of a decrease adjustment will come out at the current average.  The exception is if they are lot or serial number tracked.
If the Trade-ins need to have a separate/unique cost then you could consider tracking them with a separate item number.

——————————
Andrew Kennedy
Principal Consultant
Socius
Brecksville OH
——————————
——————————————-

[Kyana Brooks]

Andrew,

If I am serial or lot tracking and using FIFO perpetual will my inventory move at current cost or the cost at the time of the purchase?

——————————
Kyana Brooks
Operations Manager
EIZO Rugged Solutions Inc.
Altamonte Springs FL
——————————
——————————————-

[Andrew Ells]

Bob,

Is the inventory put in the “returned” state?  and is it in another “virtual” warehouse?

We have separate “virtual” warehouses for this purpose.  When we get product back from a vendor we put it in a Return Warehouse – under the return quantity for quality control.  When we deem the product is good or bad we then move it to the “functional” warehouse – on hand quantity.  This will then be added to the inventory layer for that warehouse.  If we want to dispose of the product we move it to the on hand quantity of the virtual warehouse and then dispose of it. 

In our experience this has been able to maintain the FIFO layers of our inventory and not affect any costs.  It could be the wrong way but it works for us.

——————————
Andrew Ells
Senior Finance Manager
Fitness EM LLC
Uxbridge, MA

Gpug.comBoston
——————————
——————————————-