Incorrect unit cost on sales line

gemini_shooter

Hello everyone,

I have a problem, my sales orders are not getting updated the with the appropriate unit cost. Here are the steps that I follow:

1. Create item with cost type FIFO
2. Create PO for this item
3. Receive this PO
4. Create SO for this item
5. Ship this item

6. Run Adjust cost job(This should update the unit costs on my sales lines & sales shipment lines BUT IT DOES NOT)
7. Run Post Cost to GL to post my COGS

I am running US version NAV 5.0 SP1 .... can anyone tell me if this is a known issue and if there is a fix for this.

Thank you

Kowa

gemini_shooter wrote:

6. Run Adjust cost job(This should update the unit costs on my sales lines & sales shipment lines BUT IT DOES NOT)

The document lines are not updated by the adjust cost job, only the value entries (additional entries are inserted to adjust the original cost, these are summed up in the item ledger entries cost amount fields) and starting with version 5, the adjusted cost and adjusted profit fields in the F9 sales invoice header statistics.

gemini_shooter

thanks ... this is not good ... is there a workaround ...

Here are my entries

1. No entry on purchase receipt
2. Entry on invoicing purchase

Purch. Account (DR)
AP (CR)

3. No GL Entry on adjust cost
4. Entry on Post cost to G/L

Inv. Out (DR)
Inv. Out (CR)

5. No entry on Sales shipment
6. Entry on sales invoice
Sales Revenue (DR)
AR (CR)

7. No G/L entry on Adjust cost

8. Post cost to G/L entry

THERE IS NO ENTRY NOW BECAUSE SALES LINE HAS NO UNIT COST ... HOW DO I POST MY COGS

COGS (DR)
Inv Acc. (CR)

bbrown

https://mbs.microsoft.com/downloads/customer/Nav/WhitePapers/InventoryCostingTechWhitePaper.pdf

kapil4dynamics

gemini_shooter wrote:

THERE IS NO ENTRY NOW BECAUSE SALES LINE HAS NO UNIT COST ... HOW DO I POST MY COGS

Do not shout here [-X .

Alex_Chow

The Unit Cost on the sales lines are based on the average cost at the time of entry.

The posted documents is an expected cost. For analysis, I wouldn't suggest you use the posted documents. I would stick with using Item Ledger Entry or Value Entry for costing analysis.

And don't forget this:
http://mibuso.com/blogs/alexchow/2008/0 ... true-cost/

Kowa

gemini_shooter wrote:

1. No entry on purchase receipt
5. No entry on Sales shipment

If you need that, create Interim Accounts for Inventory and COGS and activate "Expected Cost Posting"
viewtopic.php?f=23&t=26874

gemini_shooter wrote:

7. No G/L entry on Adjust cost

If you need that immediately, activate "Automatic Cost Posting"
If you need accurate figures quickly and can accept that posting might take somewhat longer, activate "Automatic Cost Adjustment"

gemini_shooter wrote:

THERE IS NO ENTRY NOW BECAUSE SALES LINE HAS NO UNIT COST ... HOW DO I POST MY COGS

You don't need to post inventory cost manually them unless you want to. In that case you should not activate "Automatic Cost Posting" or run Report 1002 "Post Inventory Cost to G/L".
But if you want NAV to do the job:
If the item in the sales line could be applied to some purchase receipt (it needs to be the same Item no., same variant code and the same location), the specific cost value attached to this receipt (represented by the value entries which are related to this item ledger entry) will also come up in your G/L Entry (unless costing is set to Average, then you will get, guess what , an average cost or Standard, which is mainly meant to be used for manufacturing items and uses the "Standard Cost" from the item card as COGS and posts the difference between this and the real cost as variance on the different accounts in the inventory posting group). And if you post an item charge later on for the receipt, the modified cost will also be transferred by posting the amount of the additional value entries as new G/L entries.