Very Bad Costing Issue

headley27

In my system there is a part number with 0 Qty on Hand but with an Average Cost of $3,289.00.

The Standard Cost of this item is $61.75.

Over the past few months 50 pieces of this item have been sold (3 transactions at 15 pieces each plus 1 transaction at 5 pieces).

The Sales Amount for each of the first 3 transactions is approx $1000.00 which is correct, however the Cost Amount is way out.

Transaction 1 Cost is $(3,795.00), Transaction 2 Cost is $11,385.00 and Transaction 3 Cost is $(49,335.00). :shock:

The Sales Amount and Cost amount for the fourth transaction are correct.

Can anyone explain how this might happen and how I can go about fixing this? It has skewed my GP% significantly.

Thank you.

headley27

3.70 A
Sales Unit Of Measure = EACH
Purch Unit Of Measure = EACH

Thanks again.

Savatage

We were told by our NSC when we upgraded from 3.10 to 3.6 that we shouldn't use average cost because it doesn't calculate correctly.

But anyway we have major issues also. They only way I was able to bring some of the Wacked out items back in line was after running the adjust cost/post to g/l reports..was use the Revalution journal to correct all the costs.

also if you can run an inventory valuation for just that item and check off all the options - see where is goes wrong.

headley27

BlackTiger wrote:

probably you should kill some "customizators/implementers" after my analysis

This problem is only the tip of the iceberg. I am concerned that this may be affected by some customization somewhere. ](*,)

Current Costing Method = Average
Never should have been changed and I don't believe it ever was.

I see an adjustment (entered by our implementer) that may be skewing things.

Since I have 0 pieces on hand it would make sense to me that the sum of the Item Ledger Entry Quantity equals 0. I have 5 pieces received waiting to be invoiced with a correct expected cost. The total of the Invoiced Quantity field equals -5 which makes sense to me.

In the Value Entry Table there is an Invoiced Quantity total of -17. I believe that this should be -5 to match the Item Ledger Entry table. Am I correct in saying this?

Prior to all the pricing problems there is an adjustment of -12 pieces entered by our implementer. It is my understanding that there were errors for a number of parts when we transitioned to Navision. I believe purchase order lines that were partially recieved in our previous system were incorrectly transitioned to Navision.

In this case the initial Purchase Receipt was for 3 Pieces but the Item Ledger Entry table posted a quantity of 15. The implementer adjusted a quantity of negative 12 pieces in both the Item Ledger Entry Quantity and Invoiced Quantity Fields.

Would this skew the Cost Amounts?
Was this the incorrect way to rectify the initial problem?
How can I fix?

Thanks again.

headley27

Thanks Black Tiger and Savatage.

I am going to do some digging and see if I can somehow fix this.

What a mess! ](*,)

There should be a emoticon with a puddle of tears below it because I really feel like crying right now.

Thanks again.