Inventory Revaluation with Inventory debit/credit type option

[SE-Yang]

My customer is using SAP B1  10.0 (FP2208) for HANA.  When we make Inventory Revaluation with 'Inventory debit/credit' option to change an manufactured item 's inventory value, it makes journal entry on the related account,  but it does not change the value in the Inventory audit report.   The price change option in revaluation can make journal entry and change the value  in the inventory audit report.  but the inventory debit/credit option does not.    Is this normal way of revaluation option function ?  or technical bug ?   

[Felipe_Lima]

Hi. Can you supply further details and some screenshots from the item's audit report? Is this about item cost or inventory cumulative value? Are you using moving average or FIFO? We are using an older SAP version, Moving Avg. method and either way the inventory cost/value is impacted.

[SonTran · Accepted solution]

Hi,

If the stock of that item is zero at the time you create Inventory Revaluation transaction, then it will not affect to Inventory Audit report.

Check if it is your case or not.

Hope this helps,

SonTran

[SE-Yang · Accepted solution]

Hello. the test item has inventory quantity and amount, and it is the manufacturing item using standard cost, i attach the pdf including screenshot . appreciate your opinion and guide.

[SonTran · Accepted solution]

It is clear now.

If the method is Moving Average, Price Change & Inventory Debit/Credit are the same affect.

However, It is different in case of Standard Cost method. Price Change is the only way to change Standard Cost of an item and then affects to Audit Report.

[hdolenec]

The item is valuated by Standard Cost method? This is an important information, because if that is the case, you cannot change inventory value in any way other that with revaluation document of Price Change type.

What you are trying to do is add value to existing stock, but since the item is valued as standard cost, it is not allocating any value to item itsefl. And that is the reason you don't see the transaction in inventory audit report, because it didn't actually affect inventory.

From accounting perspective, this should also be obvious to you when you check journal entry of revaluation document. Usually, negative revaluation should be posted to gl decrease account / inventory account. But your journal entry is posted to gl decrease account /variance account (maybe you got confused because variance and inventory account are the same in account determination, they shouldn't be).

[SE-Yang]

Thanks !