Dynamics NAV recognizes that at the end of each accounting period, there are auditing tasks that need to be performed in order to report accurate inventory value. The Inventory Valuation – WIP report is one of the reconciliation tools available to the accounting department. This report shows the inventory value of selected production orders in your Work In Process (WIP) inventory. It is important to note that before you run this report, you should run the Adjust Cost – Item Entries batch job, which will make sure the numbers reflect updated values in the report.
The Options when running this report are:
Start Date –Specify the beginning of the period for the report
End Date –Specify the end of the period for the report
The report reflects the production order number, the Item that was produced, the beginning of the period balance, consumption, capacity, output and the value as of the End Date you specified on the report.
The issue still remains: How do you verify the report amounts?
To verify or trace the amounts in the report, go to one of the Production Orders listed in the report and go to Entries, then Value Entries.
In the Value Entries, you will see Cost Amount (Actual) that has been posted. Those entries posted with an Item Ledger Entry Type = Consumption will be reflected in the Consumption column of the report. The entries posted with a Capacity Ledger Entry with a posting date within the period range on the report will be reflected in the Capacity column of the report. The Amounts reflected in the As Of Date column, consist of the Cost Amount (Actual) values from the Value Entries posted after the End Date of the report. As you see from the example above, there is an Output amount of 68.79 dated 1/5/15 and a purchase invoice with posted cost of 14.06, giving the WIP amount as of 12/31/14 the value of 54.73(68.79 – 14.06).