What are Rounding Value Entries in Microsoft Dynamics NAV?
We received a question recently from a client about an unexpected and unexplained Rounding Value Entry that was created by the Adjust Cost – Item Entries program in Dynamics NAV.
The Rounding Value Entry was associated with a Purchase Receipt that was made several months before the Rounding Value Entry was created.
The Purchase Receipt was for a large quantity of items that were sold individually over thousands of sales order shipments.
From Dynamics NAV Help:
Rounding residuals can occur when valuing the cost of an inventory decrease that is measured in a different quantity than the corresponding inventory increase. The program calculates rounding residuals for all costing methods when you run the Adjust Cost – Item Entries batch job.
When using the Average costing method, the rounding residual is calculated and recorded on a cumulative, entry-by-entry basis.
When using a costing method other than Average, the rounding residual is calculated when the inventory increase has been fully applied (when the remaining quantity for the inventory increase is equal to zero). The program then creates a separate entry for the rounding residual. The posting date on the rounding entry is the posting date of the last invoiced value entry of the inventory increase.
In this case, there were no alternate units of measure on this item, but due to the large quantity of the receipt and the large number of small shipments, cost/value rounding was introduced over time. When the last unit of the purchase receipt was dispersed, the system (Adjust Cost – Item Entries) needed to make the cost of the inbound purchase order equal to the cost of the outbound sales, so it calculated the difference between the costs of the outbounds and made a Rounding Value Entry to the purchase receipt.
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