Costing , Unit cost is taking , Not Aveage cost

hansika

HI friends,

I am working on Nav 4.0 SP3

INventory costing manual 4.0 , Chapter - III , Page - 17 according to this chapter the below statement :

when it comes Navision costing manual it tells when u sold or issue the material firast it will take the Averae cost for Cost amount , then when u run the Batch job then it will adjust the costs actual.

For FIFO , Average , Standard, specific - it will take Average cost

My setups are .

Ne w item = Cost FIFO , costing method = FIFO

Inventory setup :

Automatic cost adjustmnet = No

Automatic cost posting = Yes

Expected cost posting = No

Purchase concept :

i purchased the item Cost FIFO with different dates and different rates ( 3 transactions)

Receipt & Invoice concept

Item ledger entry :

Posting date Item Name qty Cost amount ( actutal

01/01/01 Cost FIFO 1 1000

02/01/01 Cost FIFO 1 2000

03/01/01 Cost FIFO 1 3000

so In item card Unit cost field has the value = 1000 ( even i post 3 the transactions )

Now it comes to sale :
Ship & invoiced concept.

Item ledger entry Transactions :

Posting date Item Name qty cost amount Sales Amout

020202 Cost FIFO 1 1000 2000

030303 Cost FIFO 1 1000 3000



So system has taken the Unit cost vallue when i sell the item s on 02/02/02.



My doubt is which cost will take the system at first when u do sale/ issue/ consumption ?

is it average or Unitcost in Item card .



I done the same transactions for another new item with costing method = Average.

For this item also it is taking the Unit cost only.



Please clarify about this doubt.



My doubt is which cost will take the system at first when u do sale/ issue/ consumption ?

is it average or Unitcost in Item card .

Mukesh_Verma

Hi Hansika,

First the system will create the value entries with the Average.

To correct the valuation we need to run the Adjust Item Ledger Entries Batch job which will adjust the value entries with the method specified on Item card.

Regards,
Mukesh

Deep

Hello.

Your costing method is FIFO.
Check the Unit cost LCY field on the sales document while creating sales order. It will always pick the cost from the Unit Cost field from the item card. When posting the sales order, the same will be posted as cost amount actual.

Once you run the AICE batch, the adjustment value entries will be created.

In your example, the Unit cost is still 1000 on item card because you have not run the AICE batch job. If you run the job (before Sales), then the Unit cost must change to 2000.
Then, if you create a sale order, it will take Unit Cost LCY as 2000 only.

hansika

Yes ,
System is taking the Unit cost from the item card , whether it is FIFO, STANDARD, AVERAGE.

But my doubt is In MICROSOFT MANUAL he explained that it takes the Average cost first .
So which is correct ?
When it comes practical it is taking the Unit cost .
But according to MS Costing manual it has take Average cost ?

Where is going wrong ?
Share your experience.