Navision ‘Adjust Cost – Item Entries’ Batch Job

The ‘Adjust Cost – Item Entries’ batch job is responsible for adjusting inventory values and records, in order to ensure that the correct costs are present in the general ledger and that all sales/profit statistics are up to date. When the batch job encounters value entries that need adjustment, it creates new adjustment value entries based off of information from the original value entries. The steps involved in this process are highlighted below:

a)   The batch process creates a new adjustment value entry, taking information from the original value entry, and adding the appropriate adjustment amount.

b)   When the adjustment entry is posted depends on one of two methods:

1. If inventory periods are used, then the posting date of the original entry is used, unless that date is in a closed inventory period. If that is the case, the new adjustment entry uses the starting date of the next open inventory period.
2. If inventory periods are not used, the posting date is defined by the ‘Allow Posting From’ field in the General Ledger.
   
   

c)   Navision calculates the adjustment based off of the ‘Costing Method’ chosen for each Item card.

The following costing methods are supported in Microsoft Dynamics NAV:

• FIFO (First In, First Out)
• LIFO (Last In, First Out)
• Average
• Specific
• Standard
  
  

Each of the costing methods mentioned above is described in detail at the following link: http://msdn.microsoft.com/en-us/library/hh997373(v=nav.71).aspx

*Please note: in order for the batch job to automatically update the general ledger, the user must select the ‘Automatic Cost Posting’ option in the inventory setup. If the user wishes to update the general ledger manually, they must run the ‘Post Inventory to G/L’ batch job.

Furthermore, the following options are available for the Adjust Cost – Item Entries batch report:

• Item No. Filter:Use this filter to run the batch job for only certain items.
• Item Category Filter: Use this filter to run the batch job for only certain item categories.
• Post to G/L:This function, along with the ‘Automatic Cost Posting’, allows the program to automatically post adjustments to inventory accounts in the general ledger. If this option is not selected, the user must run the ‘Post Inventory Cost to G/L’ batch job to guarantee that the appropriate general ledger accounts are updated.
  
  

*Please note: the Item No. and Item Category filters cannot be used together at the same time.
A periodic variant of the ‘Adjust Cost – Item Entries’ is offered through the ‘Automatic Cost Adjustment’ field in the ‘Inventory Setup’ table. This gives the user the option of automatically adjusting cost changes every time an inventory transaction is posted, using the following time periods:

Once an item’s cost has been adjusted (whether automatically or manually), the ‘Cost is Adjusted’ field on the item card is updated with a check mark. This check mark, which appears on any product order line for the item, signifies that the item’s cost has been updated.