Adjust cost for Sales Credit Memos

tro#1

This might get a little complicated. But I am sure the Navision experts will understand

NAV 4 SP3
Automatic cost adjust and automatic cost posting is turned on.

I create a new item and then

1) Posted Purchase Receipt for this new item
No unit cost has been posted so far (only receiving no invoicing)

2) Posted Sales Invoice for new item
Unit Cost of Value Entry is zero

3) Posted Purchase Invoice for new item

-> Because of adjust cost: Second Value Entry for Sales Invoice gets created: Unit Cost for new item can be found in the second Value Entry

EVERYTHING IS CORRECT (Inventory and COGS) FOR THE POSTED SALES INVOICE

4) Sales Credit Memo: I copy the Posted Sales Invoice from 2)
Posted Sales Invoice does only have one value entry for new item with unit cost = 0

Does anybody know a way how the credit memo needs to be posted to get the inventory and COGS effected correctly?

AdamRoue

You can use exact cost reversing and apply the credit memo to the invoice so the system knows the cost.

If you do not do this it obeys the costing method of the item, you have not said what yours is.

tro#1

The Costing Method is FiFo.
But it does not obey the costing method.

If I create a Sales Credit Memo manually than you are right: Navision takes the costs according to the costing method.

But if I COPY the original posted sales invoice then it happens what I described in my previous post. In my example the cost posted to Inventory and COGS would be 0.

I think this is not correct.

I know the "exact cost reversing" but I experienced that the user cannot deal with it. So I hoped that copying the original document would deal with all the applying automatically so the user does not have to worry about it. But copying the posted sales invoice is worse than creating a sales credit memo manually. Did you know that?

AdamRoue

Whilst the sales credit memo may reflect a 0 cost this could be correct because although you are FIFO; average will be used at this stage, and if you have 0 stock this could well be zero. This will never be updated as this is the inbound transaction, unless you set exact cost reversing. This is an inbound transaction with cost, so you either assign it, take the average with the impact this is bound to have, or use exact cost reversing.

The copy does not mean the cost is used, it is not one of the rules obeyed, as it is an inbound transaction affecting the valuation. You can argue this whichever way you like, but it is not how standard NAV works.

tro#1

Thank you very much for your fast answer.

I did several tests:
1) I created a sales credit memo manually

2) I created a sales credit memo manually and then applied it to a posted invoice.

3) I copied a sales invoice to a credit memo.

In case 1) and 2) the unit cost was the one from the item card.

In case 3) it was the one from the saels invoice (but only one value entry).

I do not understand either where it would take those value from or which routine causes it. But it can be easily recreated on every 4 SP3 database.

There was also inventory for that item on stock so the quantity was not 0.

AdamRoue

Sorry I might be missing your point here.

With point 1 and 2 the system reads the current unit cost and applies this to the credit memo. This is not returning it at the outbound cost, it is the current cost.

With point 3 you are "copying" the fields. This will copy the cost from the "Posted Invoice" I am assuming you are doing this, the get posted document lines to reverse does the same.

As far as I am aware the system does NOTHING clever here. It looks at the cost field on the posted sales invoice line and brings it back.

The cost on the posted sales invoice line is not necessarily the cost of the item however. The system is not checking current ILE and VLE values, it is simply copying the value at the time it was posted. There is no looking for the actual finished value. The only time the system matches on this level is during exact cost reversing.

tro#1

I see. I checked my posted sales invoice lines and agree: the "unit cost" from there is taken for the sales credit memos.

My prefered solution would be if the unit cost in the sales invoice lines gets updated. It would be very simple for the user then to copy the invoice and post the credit memo correctly. But this is probably my personal dream...

Thank you very much for your time and effort.

nunomaia

Check this post http://dynamicsuser.net/blogs/nunomaia/ ... rsing.aspx

Alex_Chow

You can also dictate what cost you want the item to go back into inventory by specifying the cost in the "Unit Cost (LCY)" field.