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Business value
The improvements to cost adjustment in Business Central enhance processing speed, provide greater control over adjustments, introduce proactive issue notifications, offer visibility into adjustment progress, and save partial progress to prevent full reruns on failure. These improvements lead to more accurate inventory valuation, reduced financial discrepancies, improved decision-making, and increased operational efficiency.
Feature details
Inventory cost adjustment in Business Central is the process of ensuring that item costs are accurate. The process adjusts costs based on changes in purchase prices, revaluations, or applied costs through transactions such as sales, consumption, and transfers.
Inventory cost adjustment is essential for maintaining correct inventory valuation and COGS. It's especially important when businesses use costing methods such as FIFO, LIFO, or Average. You can run inventory cost adjustment automatically or manually. The process affects historical transactions and financial reports. To avoid discrepancies, set up inventory cost adjustment correctly and monitor it regularly.
This release introduces enhancements to the inventory cost adjustment process. These enhancements improve performance for larger workloads and make troubleshooting and monitoring easier:
- Removed bottlenecks based on telemetry data and code analysis. This change significantly improves processing speed.
- Added period-by-period adjustments and selected production and assembly order adjustments for high-transaction items. These changes give you more control over the processing scope.
- Adds notifications for potential issues, suboptimal settings, high volumes of entries, and data discrepancies.
- Develops a tool to visualize adjustment progress, so you can analyze performance issues and identify inefficiencies.
- Enables item-by-item adjustments, so partial progress is saved in long-running processes. This feature prevents full reruns if things go wrong.
Additional resources
Track item cost adjustments (docs)