Average cost <> Unit cost

zoechiang

Good day,

I use Navision 3.7 W1, Costing Method= Average
I just discovered that the Unit cost <> Average cost (LCY), in some Items
I'd try to run ACIE for serveral times or Invoice all the Purchase
but the Unit cost still not equal to average cost,
Is anybody know what happen on that.

Thank you

Zoe

tjchan

Please check the following:
1. what is the difference? Is it just the decimal places? If yes, try put the unit amount rounding precision to 5 decimal place.

zoechiang

Hi, tjchan

The Gap between Average Cost and Unit Cost is huge
the Average cost is 14424 but the Unit Cost is only 8414

i4tost

What is Average cost calculation type (you can find in inventiry setup)?

zoechiang

The Average Cost calculation type= Item

i4tost

I think it was changed manually. And now these items has 0 on inventory.
It will be recalculated if you post any positive transaction to this item.
But i can be wrong.

SteveO

Has everything for that item been invoiced?
Average Cost does not include any expected cost entries.

chaswin

As a general rule, the only time unit cost and average cost should be unequal is when there is zero stock. At this time the average cost is also zero.

Have you run the ACIE immediately followed by "Post Cost to GL"? Navision seems to generate entries in the post cost (in respect of back dated entries for example), even if the Inventory is set to immediately update the GL. I always tell my customers to do both runs, one after the other, every day. This is the only way to get reasonably accurate profit figures. I also ask them to post to GL "per entry" as this makes it easier to trace system activity back to original documents.

Please also ensure that there are NO filter conditions set. It is quite easy to put a posting date in the filter tab of the Post Cost to GL rather than the option tab. This can produce very strange outcomes. Fortunately the system is self correcting once the filters are removed and the run repeated.

Anonymous

Average cost is calculated when you open the item card. It is the sum of the cost amount (Actual) divided by the sum of the invoiced quantity from allt he item ledger entries.

Unit cost is calculated mostly be the ACIE routine. it is the same but inlcludes expected costs (as of 3.60 hotfix 22 I think - not in early versions of 3.70). Note that under certain circumstances, eg negative stock, the ACIE woun't update the unit cost.

If they were always the same, there wouldn't be two fields...

The main difference in usage is that the unit cost is the initial cost of sales nad the average cost is for information only.

Alex_Chow

zoechiang wrote:

Good day,

I use Navision 3.7 W1, Costing Method= Average
I just discovered that the Unit cost <> Average cost (LCY), in some Items
I'd try to run ACIE for serveral times or Invoice all the Purchase
but the Unit cost still not equal to average cost,
Is anybody know what happen on that.

Thank you

Zoe

Make sure you run the Adjust Cost - Item Entries process. In 3.7, you have to run this process for the Unit Cost to be updated.