Every NAV client we know (and every NON-NAV client too, for that matter) eventually confronts the need to adjust their costs. A recent blog post by Alex Chow, of AP Commerce, a California (and Taiwan)-based NAV consultant provides a quick tip that NAV users should know. While his advice won’t solve all costing issues, it provides an important foundation.
Chow points out that users occasionally need to use NAV’s “Adjust Cost-Item Entries” feature. The problem is, when you do this, NAV also adjusts the entry date of that item, often causing an unwanted back-dating issue in a previous accounting period.
The reason, Chows notes, is that the adjust cost process will always adjust to the date of the original sales transaction (unless specified otherwise)
For example, if you haven’t run Adjust Cost in a while, and you then run it say in June, and there was a sale transaction in, say, March that has not been adjusted yet, the resulting entry will date itself to that of the June entry. That’s a problem if you’ve already closed the books on March, as is likely.
However, as Chow points out, “this is where the Allow Posting From field from the General Ledger Setup screen comes to the rescue.” If you set the “Allow Posting From” field on the General Ledger Setup to a different date (say for our example, June 1), any adjusted entries that are BEFORE the Allow Posting From date will have same posting date as the Allow Posting From field entry.
In our example above, it’s 6/30/18 and you run the adjust cost process. In addition, you set the Allow Posting From to 6/1/18. If there was a sales transaction that occurred on 3/15/18 that has not been adjusted yet, the resulting adjusting entry will be posted on 6/1/18.
Setting the Allow Posting From should be done after you close the month out, NOT before, notes Chow, adding that “I’ve seen situations where the user changed the Allow Posting From BEFORE the adjust cost was ran. So all of the adjusting entries were posted in the current period instead of the period that they should’ve been in.”
The more you know…