Physical inventory in Dynamics NAV (Navision)

Romanian accounting regulations specify that a company must, at least yearly, make an evaluation of active and passive elements, which is usually performed at the end of the fiscal year. Within active elements, the stocks require most effort. First, there is a physical determination of existing quantities, and then the counted quantities are compared with recorded quantities. If there are any differences, some regulation in the recorded systems is needed.

To facilitate this operation, in Dynamics NAV (Navision) there is a dedicated journal called ”Physical Inventory Journal”. In the application the path to this journal is:  Departaments->Warehouse->Inventory>Physical Inventory Journal (see picture bellow).

Physical inventory journal looks like an ordinay inventory journal, but he has a special function, called “Calculate inventory”. This function can fill up journal lines with all the items available at a certain date in a certain location.

As you can see in the picture above, on the journal lines we have two columns, “Quantity (Calculated)” and “Quantity (Physical Inventory)”. In the first there are the quantities available into the system, as they were recorded. In the  second will be the quantities as will result from physical counting.

In order to obtain the list for performing physical inventory, the “Print” button will be used:

The physical inventory requires activities such as: counting, weighing, measuring etc., and from this activities the physical inventory list will be filled with what was found in the location. According to this list, in the physical inventory journal from Dynamics NAV,  the column “Quantity (Physical Inventory)” will be completed. If there are any differences between quantities calculated in Dynamics NAV  and quantities physically counted, the reconciliation will be made (as a plus or a minus in inventory) when the lines from physical inventory journal will be posted.

The posting will update information in the system and will eliminate the differences between  what was recorded into the system and what was found in the physical counting. What is worth to remark here is the fact  that the physical inventory is fulyl traceable into the system. We have recorded the item ledger entries generated as a consequence of posting differences (positive and negative adjustments) discovered between calculated quantity and counted quantity:

But also, when physical inventory journal is posted, the system creates some specific entries, called physical inventory ledger entries, an entry for each line which was filled on the journal.

We have in this way an evidence of all the items who were in the inventory list, confirming the fact that all the items were subjected to inventory procedure.

Do you want to explore other functionalities in Dynamics NAV?  Check here: Dynamics NAV (Navision) Resources