Using Periodic Inventory in Manufacturing

engsiong75

Hi

I have an implementation query. A customer who is using periodic inventory wants to use the manufacturing module with capacity costing. I have a problem because there is no WIP account in their system. They have an inventory WIP account but that is used by the accounts for estimating their WIP inventory.

The problem is that I have no idea what to do when the user post the route:
Debit:WIP
Credit:Direct Cost Applied Account

For the consumption of Raw material the entries will be,
Debit: Closing Inventory
Credit: Inventory Raw Material

For the consumption of Raw material the entries will be,
Debit: Inventory Finished Goods
Credit: Closing Inventory

I have implemented manufacturing for Navision but not periodic inventory with the closing and opening inventory accounts. Is there a solution besides forcing the customer to change to a perpetual inventory system.

Thank you

Alex_Chow

You do this when you setup the account schedule.

http://www.dynamicsnavconsultant.com/20 ... e-cpa-way/

engsiong75

The article was informative for normal periodic costing.
This is the logic for merchandising
Beginning Inventory
+ Purchases
- Inventory Adjustment
- Ending Inventory
= COGS

I fully agree with the above design.

However,as I am dealing with a manufacturing so there are some differences
Beginning finished goods inventory
+ Cost of goods manufactured
- Inventory Adjustment
- Ending finished goods inventory
= COGS

However, I am not sure what exactly goes into the Cost of goods manufactured. From the standard logic, I can figure that it includes all purchases to vendor and subcontractor but how do I include things like Material variances, WIP, capacity costing?

Thank you,