Cost Application column in the Item Application Entry table

bernajac

Good Day

Can anyone tell me what the Cost Application field in the Item Application Entry table is for? The reason why i ask is that if i look on the Item Ledger Entry table and go to Application and Applied entries i can't see any applied entries. I looked at the code that runs on this button and found the filters and manually looked at the Item ledger entry number in the Item Application Entry table but in the case were the Cost Application field is true it does not have an Outbound Item Ledger Entry number or in the case where the Outbound Item Ledger Entry number is filled in the Cost Application field is false. :shock:

Wiechardt

There are many papers and documents on this very same topic, and to try and explain it to you in a couple of hundered words will be challenging, but I am going to give it my best shot.

There is nothing wrong with neither the Item Application Entries, nor the Item Ledger Entry "Applied Entries" screen, assuming that you have not explicitly applied one entry to the other using the "Applies-to Entry" field in any of the Item related Journals.

When looking at the "Applied Entries" screen from the Item Ledger Entry window, it displays entries that have been explicitly applied against one another. To test this for yourself, do a negative adjustment of an item in the Item Journal, use the "Show Column" to display a field called "Applies-to Entry" and apply the negative adjustment to a "Positive"|"Open" Item Ledger Entry on the same Item by selecting an entry no in this field. After posting the Journal, you can go to the Item Ledger Entry screen, use the "Applied Entries" window to see that you have applied a Negative Adjustment against a particular Positive Entry on that Item - there are many different reasons for wanting to do this.

So why then does the "Cost Application" field in the Item Application Entry have a tickmark if I have not explicitly applied the entries to one another.

The reason is very simple. In Navision, a Costing Method has both a physical flow principle as well as a cost calculation principle. When dealing with average cost, for instance, the physical flow of items is "First in First Out", or FIFO, and the cost calculation method is based on average.

This means, when selling an item out of stock, the system not only has to calculate what the cost of the item is you are selling, but also "which" item you are selling. The system will then look at all Open Positive entries and take the one with the earliest date to "Apply" to this sale. Thus reducing the "Remaining" quantity on the original/old positive entry. The system will, during this creation of the "Item Application Entry" determine whether the cost of the outbound entry is directly related to the cost of the inbound entry. If it is the case, the "Cost Application" field will contain a checkmark. In other words, this field will tell you if the cost on the "Sale" or "Outbound Entry" was taken directly from the "Purchase" or "Inbound Entry" (In which case the field will contain a tickmark), or whether the cost on the outbound entry was a calculated value based on the Costing Method of the item.

So in short, there is nothing wrong if you cannot use the "Applied Entries" screen even though the "Cost Application" field contains a tickmark for the same entry in the "Item Application Entry" table.

bernajac

How can the Cost Application field show you that the "Outbound Entry" was taken directly from the Inbound Entry when the "Outbound Entry" is zero? To what was the Inbound Entry applied to?

Here is an example:

Entry No. Item Ledger Entry No. Inbound Item Entry No. Outbound Item Entry No. Quantity Cost Application
82599 105106 105106 0 3 Yes