why navision costing like this

ameenameen Member Posts: 217
Hi,


I read Navision inventory costing manual. Isome doubts on this process. I would like to thorw in mibuso. So experts please throw u r advise.
I created one item. I purchased this item 3 times with different date and different cost.
I selected Fifo costing method for this item.
Item rate qty date
A 10 1 12/22/07
A 15 1 12/23/07
A 5 1 12/24/07

So when I sold this item on 12/26/07 it is taking average cost at first.
When run Adjust item cost entries , then it is taking fifo cost on this of 12/22/07.
What my doubt is why Navision doesnot work according to fifo method at first.
When AD. Item cost entries it is working according to FIFo.
Please throw u r valuable solutions.
ameen

Comments

  • NaviDevNaviDev Member Posts: 365
    That is navision way of doing things in costing. That is one the functions of adjust cost utility "to correct costings of entry". If you want the program get the actual cost of the item, you can use the "Specific" costing method. This works specially when implementing with lot/serial numbers.
    Navision noob....
  • ssinglassingla Member Posts: 2,973
    Navision always post with average cost and later on adjust the cost on the basis of costing method specified on the item (When Adjust Cost batch job is run). AFAIK it is done to reduce the processing time of posting of entries and to some extent allowing system to tackle the back date entries. Just imagine if system post with the FIFO method and later on a back date sale/purchase/consumption etc. entry is posted :mrgreen:
    CA Sandeep Singla
    http://ssdynamics.co.in
  • darshanmdarshanm Member Posts: 280
    when any negativeentry is passed(-ve Adj/Sales) it will be set off
    as per the costing method. Its means NAV wil deduct remaining qty
    from First Item ledger if costing method is FIFO.

    When you run Adj Cost Item batch job, navision will adjust the cost
    as per that
    Darshan Mungekar
    Senior Consultan
  • ameenameen Member Posts: 217
    thanks Ssingla,

    Ssingla wrote :

    Just imagine if system post with the FIFO method and later on a back date sale/purchase/consumption etc. entry is posted


    I could not understand this line . Could u throw some explanation.

    Thanks and regards
    ameen
  • apsaps Member Posts: 63
    hi all,
    I am having a problem of the similar nature......
    I am working for a Manufacturing concern...
    My client issues material from the stores department to various other depertment......

    Can any one tell me how to handle such transaction?
    How will FIFO method will function while passing such transaction?

    waiting for reply....
  • ameenameen Member Posts: 217
    Hi experts,


    some more explanations .............................
    ameen
  • ssinglassingla Member Posts: 2,973
    Just imagine if system post with the FIFO method and later on a back date sale/purchase/consumption etc. entry is posted

    FIFO method in NAV records the transaction in the order transactions are made. For Ex.
    (Date in MM/DD/YY)

    Entry No Posting Date Qty. Cost Amount (Actual) Remaining Qty
    1 01/01/08 100 10000 0
    2 01/03/08 -100 -10000 0
    3 12/31/07 100 20000 100

    The FIFO method will record the application of Entry No. 2 with Entry No. 1 and though Entry No. 3 is predated it will not get applied to Entry No. 3. I hope other experts will validate it.
    CA Sandeep Singla
    http://ssdynamics.co.in
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