Costing Method

Silva

Hi
It is what is the Best fit COSTING METHOD for the Items that has always, Item Charge Application? hoping your reply...TY

tgupta

It should be average

ara3n

why average?

I would never recommend any client to use average.

I would need more info about the items, the business the client is.
The fluctuation in Unit cost (Vendor Price) of the Item.

cernst

What kind of item is it? manufacturing or purchase? The choice of costing method is based upon things like economic laws in the country, business etc like Rashed wrote. You can't just simply say that costing method xxx is the best.

David_Singleton

Absolutely Rashed is correct, you need a lot more information before giving such advice, and specifically if you are going to add costs,then Average is the worst possible choice.

Silva

The Client Item is Purchase ITEM..this Kind of Importation ITEM...the Client Import from another COUNTRY..and there's a Many Charges to the apply to that Item...Thats why I ask some advise what type of costing..we must apply to that Item...Hoping for your reply

Deep

It depends equally over the will of company along with the nature of item.
You must ensure about the cost of item per purchase, and the charge values per purchase. If this is uniform and within a specific tolerance, then FIFO can be used. The specific tolerance can depend on the relative amount of charges to the item cost.

If the cost of item fluctuates much and the charges as well which are loaded, then the company can go for a manual application.

Alex_Chow

The best person to ask that question is a CPA (Certified Public Accountant). Why are you asking NAV programmers to give you accounting advice? Especially something as important as your company's costing method?

David_Singleton

Alex Chow wrote:

The best person to ask that question is a CPA (Certified Public Accountant). Why are you asking NAV programmers to give you accounting advice? Especially something as important as your company's costing method?

=D>

Silva

Thanks for your advise...