Costing System in Navision..

nrapendra

Hi All,

I want to go through the whole costing system in navision.


for example when i create produstion order
it should calculate cost based on the raw mat. and operation cose.
as soon as i post output qty,it shouls automatically post that cost.
on the basis of which i can see the profits.

how can i get it.

pls suggest.is there any mannual for it.

kine

1) There are some costing whitepapers on Partner Source
2) You need to have all purchase invoices posted to have all material invoiced. After that, if you run the Adj. cost batch, it will distribute all costs through whole array - but all must be set properly. This is just simplified description :-)

nrapendra

ok.
i have done it. working fine.

but how can we do it with the items which are manufactured.
ie which stock is incresing through Output journal

ayhan06

after you run adjust cost-item entries batch job, it will have forwarded the total cost of materials consumed and capacity costs to the cost of manufactured items automatically.

johnson_alonso

Hello wondering friend,
You must decide what costing method (inventory valuation method) you want to use. Options are std, FIFO, LIFO or average. Standard is a general manufacturing company costing method, but sometimes can't be used if they can't maintain shopfloor cost, the item's purchased price and overhead are fluctuating.
If you use standard costing, you must do revaluation journal to change standard costing of a product and physical inventory journal to change the raw material costings.
Although you change the product item cost (raw material cost through purchase invoice and routing cost through output journal), it will not update standard cost but only result in variance and the variance posted to variance account.
If you tick automatic cost posting field in the inventory setup, you use perpetual inventory system. if automatic cost adjustment field in inventory setup selected to be always , then you don't need to run adjust cost batch job, but automatically adjust the cost.
Another pdf file to help you to understand costing, is technical whitepaper of navision costing. mail me if you need to : johns_alonso@yahoo.com



Rgds,