How to change the perpetual valuation method and the periodic valuation method when Manufacturing in Microsoft Dynamics GP is installed

How to change the perpetual valuation method to the periodic valuation method when Manufacturing is installed

1. On the Reports menu, point to Inventory, and then click Inventory.
2. Print the Stock Status report for the items that you are changing.
   
   Note The Stock Status report displays a record of the on-hand inventory value.
3. On the Cards menu, point to Inventory, and then click Quantities/Sites.
4. In the Item Quantities Maintenance window, make sure that the items that you are changing have no allocated quantities.
   
   Note If you change the perpetual valuation method to the periodic valuation method, the items that you are changing cannot have any allocated quantities.
5. Process the documents of the unposted transactions or of the outstanding transactions. These transactions are as follows:
   
   • Sales orders or sales invoices
   • Purchase orders or purchase receipts
   • Inventory transactions or inventory stock counts
   Notes
   • To process these documents, you can delete or void the documents. Or, you can remove the line item in question from the documents.
   • The items that you are changing cannot exist on any unposted transactions or on any outstanding transactions.
6. If quantities of the items that you are changing were issued to the work-in-process (WIP) account, post reverse-issue transactions. Do this to remove these quantities from the WIP account. These items must not exist in the WIP account for manufacturing orders.
   
   Notes
   • To view the WIP account information, use the SmartList object.
   • After the perpetual valuation method is changed, you can post issue transactions to return the appropriate quantities to the WIP account.
7. Have all users exit the transaction windows for the following modules before you use the Change Valuation Method tool:
   • Inventory
   • Sales Order Processing
   • Purchase Order Processing
8. Use the Change Valuation Method window to change the perpetual valuation method to the periodic valuation method. To do this, follow the appropriate step:
   • If you are using Microsoft Dynamics GP 10.0, point to Tools on the Microsoft Dynamics GP menu, point to Utilities, point to Inventory, and then click Change Valuation.
   • If you are using Microsoft Dynamics GP 9.0, point to Utilities on the Tools menu, point to Inventory, and then click Change Valuation.
   Note This updates the valuation method (VCTNMTHD) field in the IV00101 table and in the CT00102 table.
9. Use the value in the Standard Cost field in the Item Maintenance window to populate the ICIV0323 table and the CT00003 table. To do this, follow the appropriate step:
   • If you are using SQL Server Desktop Engine (also known as MSDE 2000), start Support Administrator Console. To do this, click Start, point to All Programs, point to Microsoft Administrator Console, and then click Support Administrator Console.
   • If you are using Microsoft SQL Server 2000, start SQL Query Analyzer. To do this, click Start, point to All Programs, point to Microsoft SQL Server, and then click Query Analyzer.
     
     
   • If you are using Microsoft SQL Server 2005, start SQL Server Management Studio. To do this, click Start, point to All Programs, point to Microsoft SQL Server 2005, and then click SQL Server Management Studio.
10. Run the following scripts against the company database.

    update CT00003 set COST_I=b.STNDCOST from CT00003 a, IV00101 b
     where a.ITEMNMBR=b.ITEMNMBR and a.COST_I<>b.STNDCOST
    update ICIV0323 set MATCOSTI_1=b.STNDCOST, 
    TOTALCOSTI_1=b.STNDCOST from ICIV0323 a, IV00101 b 
    where a.ITEMNMBR=b.ITEMNMBR and a.MATCOSTI_1<>b.STNDCOST
    

    Note The ICIV0323 table and the CT00003 table are standard cost tables.
11. On the Cards menu, point to Inventory, click Item, and then verify that the records that were created have a standard cost.
12. Print the Stock Status report for the items that you changed. The Stock Status report displays the value of the inventory at periodic costs. These periodic costs are standard costs.
    
    Note To match the new value of the inventory to the value in the inventory accounts, post the journal entry in the general ledger.
13. Enter and then revalue the standard costs. To do this, use one of the following methods.

    Method 1

    1. In the Standard Item Material Costs window, point to Manufacturing on the Cards menu, point to Inventory, and then click Std Item Mat Costs.
    2. Use the "Roll Up and Revalue Inventory" window to revalue the standard cost. To do this, follow the appropriate step:
       • If you are using Microsoft Dynamics GP 10.0, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Manufacturing, and then click Rollup and Revalue.
       • If you are using Microsoft Dynamics GP 9.0, point to Routines on the Tools menu, point to Manufacturing, and then click Rollup and Revalue.

    Method 2

    1. In the Standard Cost Maintenance window, point to Inventory on the Cards menu, point to Manufacturing, and then click Std Cost Maintenance.
    2. Use the "Roll Up and Revalue Inventory" window to revalue the standard cost. To do this, follow the appropriate step:
       • If you are using Microsoft Dynamics GP 10.0, point to Tools on the Microsoft Dynamics GP menu, point to Routines, point to Manufacturing, and then click Rollup and Revalue.
       • If you are using Microsoft Dynamics GP 9.0, point to Routines on the Tools menu, point to Manufacturing, and then click Rollup and Revalue.

    Method 3

    1. On the Cards menu, point to Manufacturing, point to Inventory, and then click Standard Costs Changes.
    2. Enter the standard costs in the Standard Costs Changes window, click Rollup, and then click Replace Costs.

How to change the periodic valuation method to the perpetual valuation method when Manufacturing is installed

1. On the Cards menu, point to Inventory, and then click Quantities/Sites.
2. In the Item Quantities Maintenance window, make sure that the items that you are changing have no allocated quantities.
   
   Note To change the periodic valuation method to the perpetual valuation method, the items that you are changing cannot have any allocated quantities.
3. Process the documents of the unposted transactions or of the outstanding transactions. These transactions are as follows:
   
   • Sales orders or sales invoices
   • Purchase orders or purchase receipts
   • Inventory transactions or inventory stock counts
   Notes
   • To process these documents, you can delete or void the documents. Or, you can remove the line item in question from the documents.
   • The items that you are changing cannot exist on any unposted transactions or on any outstanding transactions.
4. If quantities of the items that you are changing were issued to the WIP account, post reverse-issue transactions. Do this to remove these quantities from the WIP account. These items must not exist in the WIP account for manufacturing orders.
   
   Notes
   • To view the WIP account information, use the SmartList object.
   • After the perpetual valuation method is changed, you can post issue transactions to return the appropriate quantities to the WIP account.
5. Determine the cost buckets that are used to track the costs for the item in question.
   
   Note To view the standard cost for each cost bucket, use the Standard Cost Changes window. To open the Standard Cost Changes window, point to Manufacturing on the Cards menu, point to Inventory, and then click Standard Cost Changes.
6. View the account that is used to track the following costs:
   • Labor cost
   • Machine cost
   • Overhead cost
   Notes
   • If you were tracking these costs for the finished items, these costs are no longer broken out.
   • Perpetual (actual) cost items track the full cost of the item by using a single cost bucket.
7. If the accounts that are used for the cost buckets do not include the main inventory account, post a general ledger journal entry. Do this to move the appropriate costs to the main inventory account for the item.
   
   Note For example, an item has a material cost of $10 and a labor cost of $5. Therefore, the total standard cost is $15. If the labor account differs from the main inventory account for the item, post an entry to move the labor cost of $5 for the on-hand items from the labor account to the main inventory account.
8. Have all users exit the transaction windows in the following modules before you use the Change Valuation Method tool:
   • Inventory
   • Sales Order Processing
   • Purchase Order Processing
9. Use the Change Valuation Method window to revalue the standard costs for the item. To do this, follow the appropriate step:
   • If you are using Microsoft Dynamics GP 10.0, point to Tools on the Microsoft Dynamics GP menu, point to Utilities, point to Inventory, and then click Change Valuation.
   • If you are using Microsoft Dynamics GP 9.0, point to Utilities on the Tools, point to Inventory, and then click Change Valuation.