Options for Running Adjust Cost in Dynamics NAV When It Has Not Been Done in a While
Fortunately, with Microsoft Dynamics NAV, the system does that for you: it updates your costs and subsequent profits on an ongoing basis. However, to ensure your costs and profits are reconciled correctly there is still a manual process required, the adjust cost function. To stay current, this process should be run monthly. However, we understand that this doesn’t always happen and companies need a way to run adjust cost even if it has not been done in quite some time.
This blog covers the two options available for running adjust cost in Dynamics NAV when it has not been done in some time.
Option 1: Test Running Adjust Cost in a Test Database
One option is to run the adjust cost function in a test database so as not to affect your production database and disrupt any on-going processes. To do so:
- Take a copy of production and put two copies into the test database. One copy will be used to run adjust costs; the other will serve as a comparison for posting effects.
- Look for expected errors such as:
- Blocked dimension
- Deleted dimensions
- Changed G/L Accounts Dimension Rules
- Take note that the cost will be posted backwards in time. If years have passed, this will impact previous financials.
Option 2: Create an Artificial “Restart” of Inventory Valuation
Another option for running adjust cost for previous timeframes is to create an artificial restart of inventory valuation, to do this:
- Determine the average cost per unit before adjusting the inventory out to make sure it is adjusted in and ties to the old inventory balance.
- Remove your inventory on hand by adjusting the on hand quantities out of inventory.
- Force all transactions to appear as the entries had been run by Adjust Cost Entry. It is important to note that you will need to set the flag on the transactions so that NAV reads all as adjusted.
- Then, bring back in inventory.
- Use the average cost from step (1) so that the inventory value matches previous G/L Balance.
- Make a change to the following reports so they ignore all value entries before the restart date. The below reports would be set to look only at the value entries with Posting Dates > the restart date.
- Adjust Cost Entry
- Inventory to G/L Comparison
- Inventory Valuation
- Create a new set of items, move inventory from old item to new item, and force all old items to appear as if the entries were run by Adjust Cost Entry.
- Do a reimplementation in a new company.
- Use Rapid Start to migrate all current setup tables.
- Rapid Start all Master tables (vendor/item/customer)
- Adjust inventory in at the current average cost per unit
- Migrate over open sales/purchase/production orders
Each option is viable and can help reconcile your costs: one is not inherently better than the other one.
We hope this helps to explain the options on running adjust cost for previous timeframes in Dynamics NAV. If you have any questions about this process or if you have some ideas of your own, please comment below.
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