There are so many different questions you could ask about Inventory and Warehouse in Dynamics NAV (inventory costs, inventory levels, inventory valuations, discrepancies between inventory and warehouse, etc.), but most of the answers could start with “Have you ran Functions > Calculate Whse. Adjustment batch job in Item Journal?”
What is Calculate Whse. Adjustment Batch Job in Dynamics NAV?
According to Dynamics NAV help files:
This batch job [Calculate Whse. Adjustment] sums up item by item all the quantity adjustments found in the warehouse adjustment bin. If the sum of the adjustments for an item is a positive or negative quantity, the program creates a line in the item journal for posting. When you post the adjustment lines, the item ledger and the warehouse records for the items, variants and locations that you selected in the batch job correspond exactly. To run this batch job, open the Item Journal window and click Functions, Calculate Whse. Adjustment.
What does this mean in simple user-friendly terms? Well, if you are using advanced warehousing, whenever you do a stock adjustment, it needs to be done in two steps:
- Post Adjustment in Warehouse Module (Warehouse Entries)
- Post Adjustment in Inventory Module (Item Ledger Entries)
If we would post Whse. Item Journal (to illustrate 1. Post Adjustment in Warehouse Module ) for Item 80216, Location WHITE, Bin Code W-04-0005, Quantity 100:
In Bin Contents, we could see that Warehouse Entries have been updated with the adjustment:
In fact, if we would look at Warehouse Entries directly, we would see that the first step (of Warehouse Adjustment) hits “ADJUSTMENT” bin (defined on the Location Card), and the bin define on warehouse journal line (W-04-0005):
However, in Item Ledger Entries, we would see that the stock adjustment is not visible yet (we can see only entries that were there for another location prior to our warehouse adjustment):
To bring back Item Ledger Entries in sync with Warehouse Entries, we need to execute step 2. Post Adjustment in Inventory Module. We need to go to Item Journal, click on Functions > Calculate Whse. Adjustment.. and post item journal:
This, is not affecting Bin Contents at all (because this has been adjusted in the first step), however it is creating another Warehouse Entry in “Adjustment” bin (when you will run Functions > Calculate Whse. Adjustment.. next time, total quantity in “Adjustment” bin will balance to 0, and item journal will not be created):
And second step also updates Item Ledger Entries (bringing our stock on Item Ledger Entries in sync with Warehouse Entries):
We could even say, we have two systems – one for Warehouse Entries, one for Item Ledger Entries, and ideally, those two should be in sync.
So, whenever you post Whse. Item Journal (a positive or negative adjustment), or whenever you post Whse. Phys. Inventory Journals, you are executing on the first step: changing quantities for Warehouse Entries. Therefore, to bring back the system in sync with Item Ledger Entries, you need to go to Item Journal, run Functions > Calculate Whse. Adjustment.. and post retrieve lines.