Manufacturing Standard Cost

jmcitjmcit Member Posts: 10

I have a customer who has a production item, he has decided on this occasion to buy the goods in rather than make them. Can he use the manufacturing part number to buy in or should he create a separate one. If so why ?.



  • Options
    pvrbpvrb Member Posts: 17
    I would like to say that I do prefer one item card.
    I would argue that item availability in Nav is very important and one can never easily run automatic replenishment when there are two item cards representing the same thing. Also, when barcodes are implemented in the warehouse, two item cards can be a nuisance.


    Please note: I ought to add that I am aware of the Inventory Posting Setup
    [As I'm sure you know that this is "a place where one creates links between inventory posting groups, inventory locations, and G/L accounts", esp. Inventory Account - I borrowed those words from Nav help...]
    In some countries, I trust, there simply must be separate G/L inventory accounts for 1.materials, 2.manufactured goods and 3.purchased goods.
    If your implementation is in one those countries and on top, the requirement by your client is that all 'item cards' are stored in the same location... Well, then the Inventory Posting Group on the item card practically determines the Inventory Account.
    In the scenario I've just painted, one item card would be posted against one inventory account regardless whether it is purchased or manufactured. Accountants do not like this, sometimes, and some people might argue that posting to g/l is impossible to control without having two item cards (one for manufactured goods and another for purchased items).
    Oh well, quite a valid point... Still, additional G/L postings, in my opinion, are maybe less trouble than having two item cards for the same thing.
Sign In or Register to comment.