Home Blog Finance Change the costing method, avoid errors

Change the Costing Method ändern, avoid errors

Whether for legal reasons, changes in procurement or user error, there are many reasons for changing the stock issue method, which is why they are a natural part of everyday life for finance professionals.

For those responsible, the most important aspect of the change is to carry out the adjustment in an orderly process. This is the only way to ensure a complete and correct reassessment.

Sources of error

This task requires attention if the adjustment is made during ongoing operations – which should be the normal case. The material to be re-evaluated is located in many places: in the warehouse, in assembly, in transfer warehouses, in dispatch. There may also be an order on the way.

That is why it is important to first analyse the existing stock:

  • What is the stock level in the warehouse?
  • Which stocks are in assembly or otherwise being processed?
  • Are there negative stocks?

Once the preparations have been completed, the changeover takes place on a specific key date. To ensure an error-free process, the following mental model is helpful: the positive stocks are derecognised using the old method and then reinstated using the new method.

Proposal CKL Software

Costing Method 365 is an app for Microsoft Dynamics 365 Business Central. With the app from CKL Software, you can change the inventory issue method and valuation basis of an existing item, even though postings already exist for this item. The advantages are

  • Flexibility
    You can customise the method for each item individually and multiple times.
  • Transparency
    The item history is retained and your changes remain traceable. This improves your ability to provide information during tax audits.
  • Consistency
    The error rate is reduced, as a manual change process can always be subject to errors.

See for yourself and attend one of our upcoming webinars.

Table of contents

This content may also be of interest to you