Indirect Cost % And Item Journals

Jonathan2708

Hi,

I have a query about Indirect Cost %. For example I have an Item card as follows (after purchasing 1 item at Direct Cost = 10) :

Costing Method : FIFO
Unit Cost : 10.90
Overhead Rate : 0.00
Indirect Cost % : 9
Last Direct Cost : 10.00

When I start an Item Journal for a Positive Adjustment for quantity 1 I get the following default column values :

Unit Amount : 10.00
Amount : 10.00
Indirect Cost % : 9
Unit Cost : 11.881

This is effectively applying the 9% twice to the direct cost of 10, increasing the unit cost value of the item! Surely this cannot be right. The help file describes what should happen :

Unit Cost Field
The Item Journal Line Table

This field shows the unit cost of the item on the line.

If the Costing Method field on the item card is set to Standard, the program will automatically retrieve the figure from the Unit Cost field on the item card.

If this is not the case, and the entry type of the item journal line is not Purchase, the program calculates the unit cost as Unit Amount plus the Indirect Cost %. The program also adds the Overhead Rate to the unit cost, if an overhead rate has been defined on the item card.

If a do a Negative Adjustment, the existing unit cost is used as I would expect.

Can anybody comment on the Positive Adjustment scenario?

Thanks

Jonathan

Jonathan2708

Hi,

I've checked Knowledgebase and this has been confirmed as a bug with Item Journals in versions 4 and 5. The following 2 hotfixes are appropriate :

922927 - The value in the Unit Cost field is incorrectly calculated when you create a positive adjustment in an item journal in Microsoft Dynamics NAV

934156 - The amount in the Unit Amount field on the Item Journals form is incorrect in Microsoft Dynamics NAV.