Add. Purchase costs for Raw Mat passed on to Finished Goods?

koras

Unfortunately I don't have a test environment available to check the following.

Using 3.70 in a manufacturing company, when additional purchase costs have to be retrospectively allocated to a raw mat. (RM) purchase,
1. Will the inventory value of the meanwhile produced Finished Good (FG) be increased when lying on stock?
2. Are the COGS increased of those FG already sold meanwhile?

Example:
- Purchase of 3 different RM
- All three RM are partially used for the production of 10 FG units
- 5 FG units are sold, 5 remain on stock
- Freight invoice comes in for the purchase of the RM -> Is allocated to all three RM according to their value
- Adjust Cost Utility is run

Is the inventory value of the remaining 5 FG increased?
Are the Cost of Goods Sold for the 5 FG already sold increased?
Or have the remaining RM units to take all of the burden?

Thanks for your hints. Rgds Koras

AdamRoue

koras wrote:

Is the inventory value of the remaining 5 FG increased?
Are the Cost of Goods Sold for the 5 FG already sold increased?
Or have the remaining RM units to take all of the burden?

Thanks for your hints. Rgds Koras

Using 4 with item charges the answers would be:
Inventory Value of remaining 5 FG are increased
COGS of FG already sold is increased
Making the third point not relevant.

I am afraid with 3.7 I cannot say - do you even have item charges?

koras

Thanks for the hint. Of course 3.70 has the Charge Item function. I would expect that the logic you describe for version 4 is also in 3.70, although I'm wondering how NAV makes the link, because in reality the three RM in my example will be or have been used for the production of various FG.

Do you happen to know where there is a description of the logic for that on the internet (manual or training sheets)?

Rgds, koras

AdamRoue

Hi

I am afraid I do not know where this can be found. I simply created a parent with one component, made 1, leaving some raw material in stock, sold the finished goods, added in an item charge invoice and pushed it all through to see the value and costs. Quick and simple

darshanm

When you assign additional cost through Item charge on your
RM purchase, its value gets increased.

Actly NAV checks the diff between, Cost Amnt(actual) and Cost posted to G/L fields of value entry table.

The diif. is being posted to the G/L.