If we want to answer a simple question in Business Central – “How many items we have in each location?” then there aren’t that many great built in reports available. There is the standard “Items by Location” report that is not that great. It doesn’t offer exporting, doesn’t offer filtering, you can’t see item values etc.
There are a handful of concepts intricately connected and are an absolute must for understanding how inventory transaction flows throughout the system, what is affected and how the subledger is connected to the general ledger.
Posting an inventory transaction has three important pieces.
One of the most controversial questions when running workshops with clients surrounds which costing method will be used for inventory. For users in the finance department, the inventory valuation comprises a large portion of their balance sheet reporting; and if salesperson bonuses are based on sales profitability, it’s very important to them as well.
One of the many helpful features for ERP users in Microsoft Dynamics Business Central is Inventory Adjustment. This feature makes it fast and easy to make adjustments to your inventory, while making appropriate journal entries in the back end. Watch this brief video to see how to use this time-saving feature in Dynamics 365 Business Central.
Prior to Microsoft Dynamics NAV 2013 R2, developers had to customize Dynamics NAV to disable posting negative inventory, but in NAV2013R2 Microsoft have starting offering this feature as standard. One can now set up so that outbound posting that brings inventory below zero is blocked. This can be set up per item or for all items. We can put a check mark in Prevent Negative Inventory field, which specifies if you can post transactions that will bring inventory levels below zero.
At the end of every month, we will inevitably get some questions on why their inventory valuation figures does not match the G/L inventory account. We would investigate and find out why and provide solutions on how to fix them.
Some of the reasons are pretty common so I’d thought I compile a list of reasons why your inventory valuation does not match your general ledger, and how to fix them.