What is it?
It’s a routine that checks that the inventory cost of a transaction going out of the system matches the inventory cost that went in.
For example –if you purchased an item in January, Sold it in February and then posted a purchase invoice for it in March (with a different cost), it would adjust the cost of sale to match the newly posted invoice cost.
When should I run it?
Firstly you should run the routine away from normal transactional hours, as it is quite a complex process and can cause record locking if you try to run during the day.
How often should I run it?
This really depends upon how accurate you need to keep your cost of sale information during the accounting period. As a minimum you should run it once per month, we generally recommend running it weekly.
Do I need to run it if I am using Standard Costing?
Yes – this is because you may still have stock with a different standard cost to current, especially if you have not re-valued your stock to match the standard cost.
How do I need to set up my posting dates?
You need to pay attention to getting your posting dates correct before you run this routine, as it will attempt to post into a prior period unless you set your posting date ranges correctly.
You need the allowable date range set for the person running the routine to be as wide as any potential adjustments. If you set this too narrow, you will receive an error saying to don’t have permission to post in that date range.
General Ledger Setup
This is the important one! The “Allow Posting From” field needs to be the first date you want any prior period changes to get posted to, so typically this is the first day of your current period. Anything after this date will get posted on the actual date of the change. If you are running the routine say in the first week of a month, but using it to finish off the previous accounting month, then you would set this field to the first day of the previous month, allowing it to adjust cost of sales for the previous month before you close it.
Remember to change the dates in your user setup back to the current period!