average costing

acs

We've just gone live with Navision and realised that costs on purchase orders do not update the inventory item average cost field until the purchase invoice is posted; nor do subcontract costs get added to jobs. The purchase invoice may not be received for several weeks after the sale of the item/job resulting in over inflated margins.
Does the system "catch up" when the purchase invoice is finally received and how can we reflect the correct margins in the interim?

Thanks

johnh

The system definetly catches up, automatically if you have "Automatic Cost Posting" option box checked. You find this in the Main Menu Inventory and then in Setup, General tab.

Cost figures for a Sales Order are estimated until good numbers are known.

If the option for "Automatic Cost Posting" is not enabled, there are reports that you run to update the costs.

hansfousert

Here are some things to take into account:
- item ledger entries contain both logistical and financial information
- a logistical entry is only posted into your general ledger when a financial entry has been made (goods received/delivered will only be posted when the invoice has been posted)
- posting of these entries will be done automatically if you have activated 'Automatic cost posting'
- otherwise posting must be done via a periodic activity in the Item menu (don't know the English name - sorry)
- BUT... with average costing another periodic activity in the Item menu is very essential. This one recalculates the real costs.

Well, I could go on for a while but maybe we'd better go on 'in private' to prevent writing a manual.

Kind regards,

Hans

NN

Hans could you please share if there is something specific made in your version for catching up with the average cost. Because I've noticed that even if you use the Inventory Periodic activities at the end of the month for calculating/posting into the General Ledger, the average cost is dependent from the order of posting, NOT from the order of Posting Dates.
regards,
Niki