The Calculate Inventory on the Physical Inventory Journal (and new Physical Inventory Order does not allow for a back-dated calculation of quantity on hand. In certain versions, this was alllowed. However, a change was introduced to no longer filter the calculation due to the fact that costing was incorrectly calculated because Item Application during posting was based on existing Item Ledger Entries regardless of posting date. So, even if Calculate Inventory was back-dated from August 31 to June 30, for example, all of the ILE posted since July 1 would still be considered for Item Application and would lead to costing discrepancies because application was not limited to entries posted up to June 30.
The challenge is that not allowing a back-dated calculation doesn't take into account the reality of managing a Physical Inventory process for the accounting and warehouse departments. The process takes time and may not be done immediately at the end of a period. To not be able to backdate the calculation is fundamentally an incorrect conclusion and too limiting.
Comments
Hello, team. I totally agree with colleagues. The feature will be in demand and MS Business Central will become more user-friendly.
Category: Inventory
I have talked to two of my colleagues in Abakion who I think nows everything about inventory costing in Business Central. And they totally agree with Thomas and Denise in this matter. Let's get the functionality back in Business Central.
Sune Lohse
UseDynamics.com
Category: Inventory
Disallowing the date filter for Calculate Inventory presumes a perfect world. Assume that we’re old hands and getting ready to close 08/31/20 timely. In this scenario, our prod-ops people would be taking inventory today and uploading their physical count to SharePoint for accounting to retrieve. The way Microsoft is envisioning this, we should enter the second the physical count is uploaded, and MSBC will calculate difference. Until we automate, that difference is our monthly usage. Post-automation, the difference will be shrinkage.
This reasoning fails on two levels:
1) Even if fully automated, there’s no accounting team that will have all PIs entered on the same date as physical count is taken. Even if I had a team of 50 accountants instead of 6, we would not have all invoices from our vendors, nor would we necessarily have all BOLs to enter incoming inventory.
2) Assume that accounting decides to wait until all PIs are entered and ensures that this occurs within 5 business days. During those 5 business days, business does not come to a standstill. Production-warehouse people will be entering BOLs. Posting physical count 5 business days later means that entries will have been made from subsequent accounting period, and those entries cannot be filtered out.
Microsoft’s assumption does a disservice to those of us who are trying to implement MSBC. We consolidate 23 different legal entities, multiple currencies, multiple business types – manufacturing, e-Commerce, software development, services. The complexity of our business model drove us to MSBC. But the way physical inventory journals are handled, Microsoft is assuming that every client enters every document the same day it is received and that prod-operations neither gets ahead of nor lags behind accounting.
Currently, physical inventory journal is designed for perfect world scenario, and that scenario simply does not exist.
Category: Inventory
Business Central Team (administrator)
Thank you for your feedback. Currently this is not in our roadmap; however, we are tracking it and if we get more feedback and votes, we may consider it in the future.
Sincerely,
Andrei Panko
PM, Microsoft