Category: costing

Abnormal posting date entries happens when the Posting Date of the receipt/shipments of inventory is after the Posting Date of the invoice. Why does this happen? You’ll need to ask your CFO or Controller. Typically, I found this more in return orders where the receipt of the product is a certain date, and the accounting department decides to post the credit memo in prior dates.

Either by mistake or intentional, if this happens, your Inventory Valuation will not tie to your G/L.

Here’s a step by step on how to replicate this problem, and how to solve this problem:
1. Create a sales order with posting date of 11/01/08
2. Post the Shipment with a posting date of 11/01/08
3. Change the posting date to 09/01/08
4. Post the invoice
5. Run your inventory valuation report as of 9/30/08
6. Notice that the item is not taken out? But if you look at your G/L, the inventory value is taken out.

This will work for purchase side as well. It doesn’t matter how to do it either using warehouse shipment/receive, the underlying process will net you the same problem.

Usually, problems like this won’t come up until the user is trying to do month end and gets really frustrated on why their inventory doesn’t tie to G/L. Unfortunately, there’s no easy way to reverse this transaction after it’s posted, the only way is to run a report at the end of the period to see what transactions have this “Abnormal Posting Dates”.

Here’s a report that will give you all the transactions that have abnormal posting dates. If you take this amount, add/subtract it to your inventory valuation report, it will be equal to the G/L inventory.

To run this report, just put the period you want to close on the Posting Date field. For example, if you’re trying to close November 2008, then your Posting Date filter should be 11/1/08..11/30/08.

Here’ the link for the report:

http://www.mibuso.com/dlinfo.asp?FileID=920

Here are a couple of reasons why you would get inventory value if you have 0 quantities when you print Inventory Valuation report and Inventory to G/L Reconcile report as of a certain date.

Scenario 1:

If the adjust cost is processed on 7/31/07, and the Allow Posting From was 7/1/07 on General Ledger Setup, the following would occur:

 6/15/07 – Purchase Receipt – $10
6/28/07 – Ship and Invoice – $10
7/15/07 – Purchase Invoice – $12
7/31/07 – Additional Cost for the sale made on 6/28/07 – $2

In this case, when you print the inventory valuation as of 6/30/07, the inventory quantity would be 0 and the inventory value would be 0.

Scenario 2:
If the adjust cost is processed on 7/31/07, and the Allow Posting From was 6/1/07 on General Ledger Setup, the following would occur:

6/15/07 – Purchase Receipt – $10
6/28/07 – Ship and Invoice – $10
7/15/07 – Purchase Invoice – $12
6/28/07 – Additional Cost for the sale made on 6/28/07 – $2

In this case, when you print the inventory valuation as of 6/30/07, the inventory quantity would be 0 and the inventory value would be -$2.00.

Explaination
Navision will automatically post the additional cost to the original invoicing entry because that’s where the cost originally applies to. If Navision detects that the Allow Posting From is before the adjusting date, then it will use whatever the Posting Date is when the adjust cost is ran.

Scenario 3:
If the adjust cost is processed on 8/31/07, and the Allow Posting From was 7/1/07 on General Ledger Setup, the following would occur:

6/15/07 – Purchase Receipt – $10
6/28/07 – Ship and Invoice – $10
7/15/07 – Purchase Invoice – $12
8/31/07 – Additional Cost for the sale made on 6/28/07 – $2

In this case, when you print the inventory valuation as of 6/30/07, the inventory quantity would be 0 and the inventory value would be 0. When you print the inventory valuation as of 7/31/07, the inventory quantity would be 0, but the inventory value would be $2.00.

Explaination
Navision will automatically post the additional cost to the original invoicing entry because that’s where the cost originally applies to. If Navision detects that the Allow Posting From is before the adjusting date, then it will use whatever the Posting Date is when the adjust cost is ran. In this example, since the Adjust Cost process posting date is 8/31/07, it will use this date as the Posting Date for the adjusting entry.