Issuance of Stores Item

PPP

Hi,

How do we handle the issue of Stores item(form), especially spares parts which is used for machines in various production department in a mfg company. How the valuation takes care.
what about those item which will fall under Fixed Assets. e.g motors, which may use in deifferent departments.

Can anybody help me out in this.

Thanks in anticipation.

PpP

ssingla

Spares are not captialized and depending on the need of the company can be issued and consumed i.e. Negative Adjustment. As far as Capital Items are concerned change the inventory adjustment account to some other account from where they can be captialized.

PPP

Thank you for the feedback.

How about the items ( stores & spares) which i believe should be expensed it out. can we use item journal -ve adjustment? what should be impact on GLedger? which setup i should give the a/c code.

Thanks
In anticipation
PpP

reema

Yes that is the best option.
When u use item Journal with option negative adjustment then two accounts will effect.
1. Inventory account - credit ( Finance management - > setup - > Posting groups - > Inventory setup)
2. Inventory adjustment account - debit .( Finance management - > setup - > Posting groups - > General - > Posting setup)

ssingla

Inventory Adjustment Account in this case will be a Income Statement Account (under the purchase/consumption Group).

PPP

Thank you all for the feedback.

I did create the Inven. adj a/c and given in setup. But I found that it will not make any entry while doing the -ve item journal transaction. But if I run the "Financial->Inventory->Costing->Post->Post Inventory Cost to GL" then it creates an entry against the adj a/c in the fin ledger., Is this the correct procedure? am using NAV 5.0 sp1.

Thanks
PpP

ssingla

you need to consult the functional consultant how he wants the entries to be posted in the G/L. If you are a technical consultant then do not intrude in his/her territory.