Unit Cost (LCY) on foreign PO is wrongly stated.

Beatrice

Hi,

On a particular foreign PO in USD, the Unit Cost(LCY) has been wrongly calculated by the system for many items on the PO.

For instance, on a PO line for Item A, it is as follows:
Quantity = 2
Direct Unit Cost Excl VAT = 30 USD
Unit Cost = 25,616.70
Unit Cost (LCY) = Rs 810,000.054

Please note that the rate is as follows: 1USD = Rs 31.62.

They have noticed this problem while posting a sales invoice whereby the Cost of Sales was significantly overstated.

Please note that users did not make any manual adjustments to the Unit Cost on the PO.

Please advise.

Thanks in Advance.

Regards,
Beatrice.

kine

1) Look into the document header and check the Currency Factor field. It must be correct. If it isn't, the wrong factor was used }e.g. because wrong date etc.)

Beatrice

Hi,

We have checked the Currency factor as you have mentioned.

The rate is correctly stated on the PO and in the Currency Exchange Rate table as well.

What can be the reasons for this discrepancy in the Unit Cost(LCY) calculation by the system.

Even the Unit Cost on the PO line is supposed to be 30 but it is 25,616.70.

How can this be?

Please advise.

Regards,

Beatrice.

Beatrice

Hi,

We found that the change in Unit Cost on the PO Line was due to a value in the Indirect Cost % field on the Purchase Order Line.

In what case does the system populate a value in the Indirect Cost % field on the PO?

I have noticed that when we try to modify the Unit Cost(LCY), system will insert an Indirect Cost % and the value of the Unit Cost field also changes.

Please advise.

Thanks and Regards,
Beatrice.

Stardust77

Please check in the Invoicing tab from the Item Card if The Indirect Cost % is having a value.

Beatrice

Hi,

There is no value in the Indirect Cost % field on any of the Item Cards.

Please advise.

Regards,
Beatrice.

Stardust77

:shock: Is it a manufactured item? If it is not a manufactured item, then I have no clue what is about. ](*,)

In any case, I would have expected the "Unit Cost (LCY)" to be greater than the Direct Unit Cost, as "Unit Cost (LCY)" = Direct Cost + Indirect Cost.

jannestig

Do you have item charges assoaciated with this PO if you have assigned a charge such as shipping etc to these lines it will be an indirect cost

Beatrice

Hi,

As reply to Stardust77, these items are not manufactured items.

On the Item Card, all items have following:

Replenishment System: Purchase
Manufacturing Policy: Make-to-Stock

Replying to Jannestig, there are no item charges associated with the PO.

Any other suggestions are welcomed as users have had this problem several times.

Thanks and Regards,
Beatrice.

Stardust77

You could go in the table 37 - Sales Line, open it with the Designer and search for "Unit Cost" and "Indirect Cost" in the code. Check the code that reffers to these fields. It might be a bug in your Navision that is somehow calculating this indirect cost.