Think about the manual spreadsheets and human memories that your salespeople need to figure out what cost the item should be before you can quote a competitive price to your customers.
Looking at the side affects, you may be wondering, why do I want to bother going through this process if I’m running fine as it is? The answer is simple, but it will reduce time and free up your company’s human resources to focus on important things. The way NAV allocates and applies the inventory entries will most likely be different than what you adjusted. A lot of times when you make an inventory journal adjustment to “take out” the inventory with the incorrect cost and positive adjust in the item with the correct cost, you are only doing it on the surface. The journal entries will need to be reversed.ģ. So when you do decide to let NAV do what it’s suppose to do, you will need to reverse these journal entries.Ģ. The reason for this is that most companies, when they do not run the adjust cost, will use the general journal to “calculate” what the COGS should be. Here’s a partial list of what you may encounter:ġ. Note that if your company has never ran this before, or have not ran this in a long time, there may be detrimental affects on your inventory and COGS. If you do not run this, no analyst in the world can begin to figure out what exactly the cost should be and address any incorrect inventory values you may have. Note that the Adjust Cost – Item Entries will look different depending on the what version of Navision you use. Here’s what the process looks like in Classic Client: Adjust Cost - Item Entries version 5.0