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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Average Cost Query
Small and medium business | Business Central, N...
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Average Cost Query

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Posted on by RR-07061806-0 852
Good day,
 
I have an item that was received, relative landed costs were applied and we have the new value of 5,123.96. Items are received in HOLD_WH and then transferred after costed to the other locations. The unit cost of the item, 5123.96 is recorded in the item card.
 
Inventory is saying this is incorrect, the adjusted cost of 0.00 should be reflected. If I match off the quantities the final amount is 0.00, what am I missing?
 
Regards
 
Rosemary
Value Entries v1....
Categories:
Dynamics 365 Business Central
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  • Suggested answer
    YUN ZHU Profile Picture
    YUN ZHU 97,897 Super User 2026 Season 1 on at
    It seems that the Positive Adjmt. on January 29th has no input cost?
    It appears that there are no issues with the value entries in the purchase and transfer process.
     
    Thanks.
    ZHU
  • Suggested answer
    Andrés Arias Profile Picture
    Andrés Arias 4,790 Super User 2026 Season 1 on at
    Hello,

    It appears that the positive adjustment made did not include the associated cost.
     
    In order to adjust the correct value, you would have to use the item revaluation journal just to adjust the cost of the product.
     

    Once the adjustment is made, it should be correct.
     
    I hope this helps.
     
    Best regards,
     
    Andrés
  • Suggested answer
    Dhiren Nagar Profile Picture
    Dhiren Nagar 2,530 Super User 2026 Season 1 on at
    Hi,
     
    In case of your Inventory amount total is 0, but it is not reflected in Item card, you need to do following.
     
    1 - On the Item card, there is a Boolean, Cost is Adjusted, you need to turn it off using Config. Package if it is not false on item.
    2 - Run Adjust Item Cost entries batch job for that particular item.
     
    Please note that Unit cost on Item card will only become 0 if there is no inventory of that item available in any location for any variant. If Inventory is available Item card will show Unit cost as Average of all inventory of that item.
     

    ✅ Tick the checkbox below to mark the answer as verified, if it helped resolve your question.

    Regards,
    Dhiren.
     
  • Suggested answer
    Alex A Profile Picture
    Alex A 3,001 Super User 2026 Season 1 on at
    Yes, someone pulled it out of inventory with its cost and then put it back in at zero cost. It would have been safer if they had done a Transfer Order rather than an On-Hand Adjustment. You'll need to use the Revaluation Journal and fix the cost of that last inbound entry.
  • Suggested answer
    OussamaSabbouh Profile Picture
    OussamaSabbouh 10,862 Super User 2026 Season 1 on at
    Hello Rosemary,
     
    If the item was fully transferred out and your net quantity is zero, then the Remaining Quantity and Remaining Amount should be 0.00, but the Unit Cost on the Item Card (5,123.96) will not reset to zero because it reflects the last adjusted actual cost, not the current inventory balance; after landed cost and cost adjustment, BC updates value entries and propagates cost through transfers, so as long as Remaining Qty = 0 and Remaining Value = 0 in Value Entries and G/L matches inventory, the system is behaving correctly — zero inventory value does not mean the unit cost becomes zero, it simply means there is no remaining stock carrying value.
     
    Regards,
    Oussama Sabbouh
  • RR-07061806-0 Profile Picture
    RR-07061806-0 852 on at
    Good day,
     
    Thanks for all the information. I'm trying the revaluation, when I click on the unit cost on the item card this comes up. The unit cost on the item card did not change to zero, but I'm seeing the below information. 
     
    Type Valuation Date Item No. Unit Cost Cost is Adjusted Entry Type Quantity Cost Amount (Expected) Cost Amount (Actual)
    Closing Entry 7/31/2025 3M06839 718.76 TRUE   2. 0.00 1,437.52
    Increase 7/31/2025 3M06839 718.76 FALSE Positive Adjmt. 2. 0.00 1,437.52
    Closing Entry 2/27/2026 3M06839 0.00 TRUE   2. 0.00 0.00
    Revaluation 2/27/2026 3M06839 0.00 FALSE Positive Adjmt. 0. 0.00 -1,437.52
     
    The quantity is 2 and the revalued amount is zero. In the GL I'm seeing the negative and positive values which means the GL is zero. Am I reading this correctly? Can I change the 'last direct cost' to zero on the item card? 
     
    There has to be an easier way to do this, because I'm not sure what I'm missing.
     
    Regards
    Rosemary
     
     
     
     
     

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