Inventory setup. Simply Accounting > NAV 2009. help please

cveale

Good afternoon. I have a client migrating from Simply Accounting to NAV 2009.

I have some questions on the inventory setup.

Simply and NAV post sales of inventory the same way

CR Sales

DR AR

CR Inventory

DR COGS.

But when it comes to purchases 'Simply' does this.

DR Inventory

CR AP

NAV does this

DR Purchase

CR AP

DR Inventory

CR Direct Cost Applied.

Now what would you recommend I do ?. I think I should just set up an new I/S account for Purchases and a new I/S account for Direct Cost Applied (since they net out anyway).

Since they net out, what is the purpose of both of these accounts ?

Thank you.

raj2000be

Hi Criag,

The difference in the way the posting happens is because the handling on inventory in the 2 different inventory accounting ways called Periodic and perpetual inventory accounting. NAV handles both, the difference is if you have automatic cost posting enabled or not. You can read more at the below link

http://ccba.jsu.edu/accounting/PERPETUALPERIODICJE.HTML

When moving from Simply to NAV you will need to create the additional accounts for purchase and direct cost applied and depending on the accounting requirement decide to map them to the same account as they will offset each other in most cases. But you will need to consider some cases where the 2 accounts will not offset each other i.e. use of item charges for one. So depending on the accounting requirements, you will need to take a decision, in most cases mapping the 2 accounts together into one account will work.

Cheers
Raj (I guess you know who this is..... )

cveale

Thanks for the reply Raj. I may just know who this person is..... \:D/

One question for you, even if you have 'automatic cost posting' enabled, is it still reccomended to run the 'adjust cost item entry' batch job ??

raj2000be

Craig,

Automatic Cost posting and Adjust Cost Item Entries are 2 different things.

You will not have to run Adjust Cost Item Entries if you have Automatic Cost Adjustment turned on. But running it once a while even if you have the automatic cost adjustment enabled is recommended.

Raj

cveale

Thanks for the response Raj.

I actually meant to say 'automatic cost adjustment' as opposed to 'automatic cost posting'.

Thanks for your feedback, much appreciated !!!

cveale

Raj, I have one question for you on item charges.
If a company wants to include misc charges (freight, brokerage), into the value of the item (the true cost of the item), then you can use item charges.

If not, then on data entry you can do a seperate line entry with a line type of g/l account and point it to the freight GL account.

My question involves using item charges.

In the setup of the item charge, is it good to have the purchase account and the direct cost applied account pointing to the same gl account ? Becuase ultimately you want them to zero out, (because the freight cost will now be included with the inventory value). Correct ?