Using Nav 5.0.
I am trying to delve into how Navision is determining costs. I have an item which was initially populated with a cost of $26.62. It lists that as its Standard cost (Costing Method: Standard). Now when I drill into the Standard cost its has a whole list of entries at $21.02. This seems to be Average cost, as it is clearly not the standard of $26.62. It also does not seem to be actual as I calculated the actual outside the system and came up with $14.40 using the BOM and a list of the current Last direct costs for those items. The disparity should just represent labor, freight, storage and all those other little things that make up actual cost, but that we do not attach to items in the system. What I don't understand is if the 21.02 is average why it hasn't shifted in a year and a half. It continually uses the 21.02 to represent the cost of the item on our Finished goods account, but it is a Standard Cost item and its standard cost is $26.62. Shouldn't it always force the total item cost to that number by how many units?
The way we do production is in two stages. We have a Formula Bom and a Production Bom. Formula Bom has FIFO items that roll into an Intermediate Fifo item. Which is then joined to Packaging Fifo Items and rolled into the Standard cost Finished Good on the Prod Bom.
As my subject states we do run the 'Adjust Cost Item Entries' periodic activity everyday. I am wondering if that may have something to do with this. Will running that override standard costs and force an average or soem other cost to be used?
Any help would be much appreciated.
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Comments
No running that never does anything on standard cost (I mean does not change it) but will check if there is any variance to be posted against the standard cost, after running this when u will post Inventory Costs to G/L it will post the variance to the respective Variance accounts.
Don't stop doing that