Unit cost in transfer order

hansika

Hi ,
Just I am focusing to learn Navision. I am working on transfer order . I getting some strange results .
I am throwing before u . Just I am leraning the Navision .
.
I had item A. Two locations = L1, L2.
I purchased item A for location L1 at unit cost = 100. Qty = 2
I purchased item B for location L2 at unit cost = 120. Qty = 2
Now I am going to transfer item A from L1 to L2 so I changed that cost from 100 to 120., qty = 1
But the Cost amount actual = 100
When I go to Value entries there it is showing the G/L accounts .effected
Inventory account = 100
Inventory ADJ = 100
Inventory = 20 strangely Entry type = Invoice
Unrealized profit account = 20 (Inventory setup) strangely Entry type = Invoice.

Same as if I do transfer from L1 to L2 with the cost 80 instead of 100 , qty = 1
But the Cost amount actual = 100
When I go to Value entries there it is showing the G/L accounts .effected
Inventory account = 100
Inventory ADJ = -100
Inventory = - 20 strangely entry type = Invoice
Unrealized profit account = 20 strangely Entry type = Invoice.

Why the cost is not updating accurately based on the unit cost what I entered in transfer order?
Why it is happening ?

Instead of increase or decrease my unit cost other accounts are effecting . My unit cost is not changing.


I am doing transactions to gain knowledge on Navision

Here u can ask y want to change unitcost . Just for transactions purpose , if I cange the unit cost how it will effect that I want know . so I done above transactions.



Let me know your explanation.

pranav-joshi

Hi hansica,

Unit cost will not be change.

but to have proper effect of the transfer to G/L run the Adjust Cost - Item Entries batch job and then run the Post Inventory Cost to G/L batch job this job is normally run at end of the day

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Pranav
Intech Systems

ssingla

This is due to the reason that the unit cost of the item is not changing due to transfer between the units of the company. The impact of loss and gain on sale/purchase of item happens when the company deals with the outside party i.e. Vendor/Customer.

The unrealized gain and loss will be setoff when the goods will be actually consumed/sold from the receiving locations.

gete

ssingla wrote:

This is due to the reason that the unit cost of the item is not changing due to transfer between the units of the company. The impact of loss and gain on sale/purchase of item happens when the company deals with the outside party i.e. Vendor/Customer.

The unrealized gain and loss will be setoff when the goods will be actually consumed/sold from the receiving locations.

I created New item and Invoiced on 02 /02/02.

qty = 1 , Unit cost = 1000 LCY.


I transfer this item from Blue location to Yellow location qty = 1 , Tranfer price = 1500.

when i post this as Shipment & Receive .

system created these entries

when we done shipment 6 G/L entries created .

1. INV adjust Acc = 1000(credit)
2 Rawmater Acc = 1000(credit)
3. Unrealized Fx losses = 500 (credit)

4. INV adjust Acc = 1000(debit)
5. Rawmater Acc = 1000(debit)
6. Rawmaterial Acc = 500 (debit)


when we receive the material to Yellow system created G/L entries.


1. INV adjust Acc = 1000(credit)
2 Rawmater Acc = 1000(credit)
3. Raw materials = 500 (credit)

4. INV adjust Acc = 1000(debit)
5. Rawmater Acc = 1000(debit)
6. unrealized losses = 500 (debit)


we done the sales invoice from the blue location at the unit price = 2000 , on 03/03/03.

system created the following entries in Posted sales invoice .


G/L Account No. G/L Account Name Amount
6210 Sales, Raw Materials . -2,000.00
2130 Raw Materials -1,000.00
7290 COGS 1,000.00
2310 Customers Domestic 2,000.00


wheni sell that item to customer that Unrealized loss account should setoff when the goods sold.

but it did not setoff when i sell that item .

what is the problem.