Indirect Cost % / Overhead Applied Account Problem

sabzam

Hi all,

We've got a couple of problems all related to the same issue. The scenario is as follows:

A few weeks ago, our client (using Nav5), had encountered an error message whilst posting a purchase invoice, stating that you must set the Overhead Applied Account in the Posting Setup. Our client, given that he couldn't post, set this account, thus allowing "Indirect Cost %" values being posted in this new account.

The problems are as follows:

1. The client claims that he didn't input any indirect cost% whilst creating the invoice lines. So it popped out from nowhere whilst creating the Invoice. (no it is not set in the item card.) Moreover, the problem gets even weirder when noticing that some figures have been posted with negative indirect cost% :shock: I've also noticed this issue in line discount%.

2. If I replicate the posted invoice to a credit memo by the copy document function, the invoice is fully copied (including the indirect cost% values). However when posting the cr memo, the Overhead Applied Account does not register any values at all.

3. The total 'overhead applied account' entries, and the total invoice entries with indirect cost% is not the same.

How can I zeroize this Overhead Applied Account, being that the credit memos are not reversing the whole process? And how about the negative values?

Thanks in advance for your help and apologies if I'm missing something out.

dmitrip

The reason why you ended up with an Indirect Cost % is very simple. Try to enter a Line Amount vs. a Direct Unit Cost field. You will notice the system updates the Indirect Cost % automaticallly. Nice function! I run into this issue multiple times. The right solution is to remove an Overhead Applied Account from the setup and educate users to enter the right field on POs.

sabzam

Thanks dmitrip for your help. As you've suggested, we've already removed the setup and made things clear to the users.

Now we still face the issue of past transactions being posted in the Overhead Applied Account.

Any ideas of how to zeroise the entries in this account and so remove it? Maybe through stock adjustments?

Thanks

Tomigs

Hello all,

I am experimienting a similar problem but in the 2.60 version.

The customer doesn't fill the "Cost %" in any item, but in some purchase orders the field has a value.

I haven't been able to reproduce the problem: I have tried playing with the fields "Amount" and "Direct unit cost", but I don't get the "Cost %" automatically filled. I have tried also introducing some currencies but with no result.

Could you put me an example where the "Cost %" would be automatically filled?

Thanks a lot.

Tomigs.

katie_at_creative

Im having exactly the same problem, i have tried to replicate but have not been successful. This is in version 5.1 sql
Does anyone have any instructions on how you can get the indirect cost percentage to populate automatically?
Many thanks
Katie

sabzam wrote:

Thanks dmitrip for your help. As you've suggested, we've already removed the setup and made things clear to the users.
Now we still face the issue of past transactions being posted in the Overhead Applied Account.
Any ideas of how to zeroise the entries in this account and so remove it? Maybe through stock adjustments?
Thanks

katie_at_creative

this has happened again, but i cannot replicate.

any ideas?

many thanks

jannestig

Describe your scenario with more information to start it rolling

Do you have the overhead account setup.

What costs are associated with you items and what inventory costing are you using ?
Do you use manufacturing?


Have a read of the inventory costing whitepaper to understand the system better as it has worked examples showing how
this account is posted too.

AdamRoue

The majority of the times I have encountered this someone incorrectly has set this up on the item and then removed it. However in the interim someone has loaded the item onto the purchase order, and the indirect % is copied to the line of the purchase order, but is not present in the item. Setting the change log on the item woudl help identify if this was your issue (next time)

katie_at_creative

Change log is activated and there is no record of any users modifying/inserting the indirect cost % on the item card since time began.

Overhead applied account is not set up in the general posting setup anywhere.

Using inventory costing of FIFO on all items.

example:
inventory costing FIFO
unit cost: £14.93
Overhead rate: 0
Indirect cost %: 0
Last direct cost: £21.36

Manufacturing is used.

Can i get the inventory costing whitepaper from the partnersource website?

Many thanks!

AdamRoue

The way to automatically get it to appear on the purchase line is by it being set on the item. If it has never been set on the item then has it ever been set manually on the purchase line? If not and it exists on the purchase line then there are two options - 1. A series of entry choices or key strokes populating the field (I cannot get it to do it) or 2. A modification is filling this either on purpose or as a result of 1.

The white paper exists on partnersource at: https://mbs.microsoft.com/partnersource ... =inventory costing white paper

but I do not believe it will not help you with this issue, it will tell you how the indirect cost is posted when set.

katie_at_creative

Its definately definately not set on the item as change log would have recorded this.

Im pretty sure its a certain order of entering fields on the purchase order, then is populating this field somehow, but i need to find out which order...

jannestig

When you create these lines are you entering anything other then items lines?

Item charge etc or GL for delivery services etc?

katie_at_creative

On the example i have been shown its just item lines, no g/l or charges etc.

AdamRoue

katie at creative wrote:

Its definately definately not set on the item as change log would have recorded this.

Im pretty sure its a certain order of entering fields on the purchase order, then is populating this field somehow, but i need to find out which order...

and the change log on the purchase line for direct entry?

katie_at_creative

change log isnt activated for the purchase line indirect cost % field. I have activated this now.

however im 99% sure its not the user entering this. It was a numbber like -8.452635

ayhan06

On purchase order line, direct unit cost comes form purchase price or item's last direct cost. but when user accidentially changes "Unit Cost (LCY)" field after direct unit cost calculation, "Indirect Cost %" is calculated..that is the reason of unexpected value in Indirect Cost % field.I have came up with this error so many times that I had to remove unit cost (lcy) field from purchase order window.

AdamRoue

ayhan06 wrote:

On purchase order line, direct unit cost comes form purchase price or item's last direct cost. but when user accidentially changes "Unit Cost (LCY)" field after direct unit cost calculation, "Indirect Cost %" is calculated..that is the reason of unexpected value in Indirect Cost % field.I have came up with this error so many times that I had to remove unit cost (lcy) field from purchase order window.

Apologies I misread your previous posting. The Unit Cost (LCY) field is not visible as standard on the purchase line, you would have to physically add it to have it there. This of course is the cost of the item, nothing to do with the purchase cost, but your inventory cost. By changing it you are saying that you want to value the cost at this rate, and the system then, if it is different from the cost you are paying for it MUST account for the difference and correctly calculates it and puts it into the indirect cost % field. Cannot believe anyone would put the Unit Cost (LCY) on teh purchase line, and further more actually change it, but if they did it would cause the difference - hence why you removed it (presumably after adding it some time in the past! )

ayhan06

AdamRoue wrote:

ayhan06 wrote:

On purchase order line, direct unit cost comes form purchase price or item's last direct cost. but when user accidentially changes "Unit Cost (LCY)" field after direct unit cost calculation, "Indirect Cost %" is calculated..that is the reason of unexpected value in Indirect Cost % field.I have came up with this error so many times that I had to remove unit cost (lcy) field from purchase order window.

Apologies I misread your previous posting. The Unit Cost (LCY) field is not visible as standard on the purchase line, you would have to physically add it to have it there. This of course is the cost of the item, nothing to do with the purchase cost, but your inventory cost. By changing it you are saying that you want to value the cost at this rate, and the system then, if it is different from the cost you are paying for it MUST account for the difference and correctly calculates it and puts it into the indirect cost % field. Cannot believe anyone would put the Unit Cost (LCY) on teh purchase line, and further more actually change it, but if they did it would cause the difference - hence why you removed it (presumably after adding it some time in the past! )

Unit Cost (LCY) field is standard on forms..I havent added any field to form. If you check purchase order subform form, you will see that ID of Unit Cost (LCY) is 68.. I have also checked that original 5.01 W1 database has this field.but it is just invisible. user can show this field easily.

I think your localized version has not got this field.please check W1 version..

katie_at_creative

That is brilliant, ive just checked and that field is visible and editable on the form and have now replicated.

Thank you!

AdamRoue

ayhan06 wrote:

AdamRoue wrote:

ayhan06 wrote:

On purchase order line, direct unit cost comes form purchase price or item's last direct cost. but when user accidentially changes "Unit Cost (LCY)" field after direct unit cost calculation, "Indirect Cost %" is calculated..that is the reason of unexpected value in Indirect Cost % field.I have came up with this error so many times that I had to remove unit cost (lcy) field from purchase order window.

Apologies I misread your previous posting. The Unit Cost (LCY) field is not visible as standard on the purchase line, you would have to physically add it to have it there. This of course is the cost of the item, nothing to do with the purchase cost, but your inventory cost. By changing it you are saying that you want to value the cost at this rate, and the system then, if it is different from the cost you are paying for it MUST account for the difference and correctly calculates it and puts it into the indirect cost % field. Cannot believe anyone would put the Unit Cost (LCY) on teh purchase line, and further more actually change it, but if they did it would cause the difference - hence why you removed it (presumably after adding it some time in the past! )

Unit Cost (LCY) field is standard on forms..I havent added any field to form. If you check purchase order subform form, you will see that ID of Unit Cost (LCY) is 68.. I have also checked that original 5.01 W1 database has this field.but it is just invisible. user can show this field easily.

I think your localized version has not got this field.please check W1 version..

It is the WI SP1 of NAV2009 and the field needs to be brought forward in the column chooser - it is on the line as it was with previous versions to "show" you the cost, but it is hidden or non-visible by default, so the user has to change the system to add it, so if you bring it forward and then you edit it then you need to know what you are doing and why.

Hayan

Hi Guys,

I am facing the same problem, does anyone know how we can solve this problem and zerowise the Indirect cost entries in GL and Value entry tables?

your fast response is highly appreciated

Best
HAYAN