Wrong PROFIT value because Sales Line-Unit Cost

elma

Please help us about next problem:

we think that MBS Navision has wrong concept about field PROFIT (value and Percentage), because it seems to work wrong.

We noticed that sometimes our profit is 100% without any sensse. Then we found:

- Navision uses field "Unit Cost (LCY)" as referent value when calculate Profit, but we think that profit should be based on FlowFiled, because...
- when user creates Sales Order, or Sales Blanket Order, Navision generates Unit Cost based on Item Card value, regardless of quantity, FIFO method etc.
- even the fact that next purchasing updates those values, and takes affects on G/L Entry-e etc., field Profit stays wrong


EXAMPLE:
- we create new Item "TEST", FIFO, Price: 150,00 USD, but that item has Inventory 0
- we creates offer for customer, e.g. Blanket Sales Order with this item; TEST, Price: 150,00 KM, (Unit Price=0 !!!!)
- OK, in that moment Unit Price is 0
- we give that B.S.Order to the customer
- then we receive those e.g. 10 TEST items, and make Purchase (e.g. 10 * 100,00 USD is purch. cost), and the Inventory is 10, Unit Cost=100,00 -that is OK
- then we realize the sale (but on Sales Line we still have: Unit Cost=0, Price=150)
- when we post that Sales Order profit is wrong - Profit=150,00 USD (100%), but it should be refreshed somehow (FlowField?????)


This can be a problem in other examples, regarding FIFO etc.


HELP!

We have already set this as an incident, but they agreed that was not OK, but said it was not a bug, so they would not do anything.
(https://mbs.microsoft.com/support/ViewI ... er=7913137)
We beleive that some of partners also recognised this problem.
So, it there any suggestions?



Thanks in advice!
Elma Cigic
elma.cigic@bbs.ba

chaswin

The cost that Navision posts against a sale is often a mythical figure. For example, if you create a new item, GRN it but don't have a suppliers invoice processed when you sell the first examples, the profit will be 100%. When the suppliers invoice is processed and the ACIE and Post Cost to GL periodic runs are carried out, a new value entry will be created to correct the cost. Your profit will then be correct. That is why both periodic runs should be done often, preferably daily.

However, be warned that the cost on the actual posted invoice lines is NEVER corrected and the profit on the posted customer ledger entry is NEVER corrected, so don't do profit reports from those two file. (Turnover is OK though). Corrections are only made in inventory.

On FIFO, the inital sale is always at average cost. The ACIE then determines the bucket that was used and corrects the cost as described above. If daily profit reports are revieved by management, it is essential the ACIE and Post Cost to GL are run frequently.

If you back date transactions, the inital posting is at current average cost and the ACIE then calculates the average cost on the day of the posting and posts an adjustment if the cost is different. It is interesting to note that this type of adjustment can result in the current average cost being recalculated - despite the adjustment being to an issue, not a receipt.