Issue: NAV recognizes rounding difference as variance

ShanilAlg

Environment: Unmodified Cronus Database – 9.0.47042.0 (NAV 2016)

Scenario:

Define two items.

Raw Material
No: RM001
Description: Raw Material
Costing Method: FIFO
Unit Cost - $0.013 (this is common if it is purchased in bulk qty, e.g. $32.50 for qty 2160)
Replenishment: Purchase
Rounding Precision: 0.00001

Finished Good
No: FG001
Description: Finished Good
Costing Method: Standard
Assembly BoM: 1 qty of RM001
Unit Cost - $0.013 (Calculated)
Replenishment: Assembly
Rounding Precision: 0.00001

Process: Create an Assembly Order for 300 quantities. Carryout multiple postings 80, 40, 180. Check the financial entries.

Problem: There are Material Variance financial entries passed on to the Material Variance account and Inventory account. In the above scenario there is no cost or quantity difference. The system is recognizing a rounding difference as variance. E.g.: on the second posting the variance is 0.003*40 = 0.12. Anything beyond the 2nd decimal is considered as a variance which is wrong.

The Inventory Setup parameters are as follows,
Automatic Cost Posting: Yes
Expected Cost Posting to G/L: Yes
Automatic Cost Adjustment: Always
Average Cost Period: Day

This above issue can be also replicated in:
NAV 2013 R2 – 7.1.39665.0
NAV BC on premise – 13.0.27183.0
This does not occur if the RM cost does not exceed two decimals.

Does anyone know if there is some fix for this?

kriki

[Topic moved from 'Navision Attain' forum to 'NAV Three Tier' forum]