Raw material and Finish Product from Diff Vendor - Unit cost

mpdevnav

Hi ,

We are using NAV 2016 and our costing method is weighted average cost.

I would like to have a solution for below scenario.

Item-A - Raw material - from Overseas Vednor

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Item - B - Finished Product -Local Vendor

Item - C - Finished Product - Local Vendor

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Importing raw material ( Item- A ) from an Overseas vendor and we pass that Item to the local supplier to make the final products (Item -B & Item -c).

Item-A received through purchase order and posted with proper actual landed cost.

We are receiving local supplier invoice to produce the item-B & Item-C from Raw material Item-A.

Currently, we are practicing Negative adjust to raw material item code and positive adjustment to finish products code with unit cost ( Raw material cost + Value added cost ).

what is the correct way to post the Finish products & Raw material consumption for above scenario with proper unit cost.

Thanks
MP

allenyyzhou

Hi

One solution I would suggest is using Assembly Order.
1.Create Assembly order. Component is Item-A, Product is Item-B or Item-C.
2.Create a virtual location for local supplier.
3.Transfer Item-A from warehouse to local supplier.
4.Post Assembly Order
5.Transfer Item-B or Item-C from local supplier to warehouse.
6.Create Purchase Order(charge Item), allocate assemble cost to posted transfer receipt of Item-B or Item-C.

But, if you have case to send Item-B or Item-C directly from local supplier to your customer, you need to customize the Item charge allocation, to let system could allocate cost to Posted Assembly Order.

mpdevnav

Really appreciated for your time and valuable reply .

I will try above method and let you know.

We are not selling those items and it's for internal consumption purpose.

Thank you.