Add. Purchase costs for Raw Mat passed on to Finished Goods?

koras
koras Member Posts: 3
edited 2007-10-08 in NAV/Navision Classic Client
Unfortunately I don't have a test environment available to check the following.

Using 3.70 in a manufacturing company, when additional purchase costs have to be retrospectively allocated to a raw mat. (RM) purchase,
1. Will the inventory value of the meanwhile produced Finished Good (FG) be increased when lying on stock?
2. Are the COGS increased of those FG already sold meanwhile?

Example:
- Purchase of 3 different RM
- All three RM are partially used for the production of 10 FG units
- 5 FG units are sold, 5 remain on stock
- Freight invoice comes in for the purchase of the RM -> Is allocated to all three RM according to their value
- Adjust Cost Utility is run

Is the inventory value of the remaining 5 FG increased?
Are the Cost of Goods Sold for the 5 FG already sold increased?
Or have the remaining RM units to take all of the burden?

Thanks for your hints. Rgds Koras

Comments

  • AdamRoue
    AdamRoue Member Posts: 1,283
    koras wrote:

    Is the inventory value of the remaining 5 FG increased?
    Are the Cost of Goods Sold for the 5 FG already sold increased?
    Or have the remaining RM units to take all of the burden?

    Thanks for your hints. Rgds Koras

    Using 4 with item charges the answers would be:
    Inventory Value of remaining 5 FG are increased
    COGS of FG already sold is increased
    Making the third point not relevant.

    I am afraid with 3.7 I cannot say - do you even have item charges?
    The art of teaching is clarity and the art of learning is to listen
  • koras
    koras Member Posts: 3
    Thanks for the hint. Of course 3.70 has the Charge Item function. I would expect that the logic you describe for version 4 is also in 3.70, although I'm wondering how NAV makes the link, because in reality the three RM in my example will be or have been used for the production of various FG.

    Do you happen to know where there is a description of the logic for that on the internet (manual or training sheets)?

    Rgds, koras
  • AdamRoue
    AdamRoue Member Posts: 1,283
    Hi

    I am afraid I do not know where this can be found. I simply created a parent with one component, made 1, leaving some raw material in stock, sold the finished goods, added in an item charge invoice and pushed it all through to see the value and costs. Quick and simple :D
    The art of teaching is clarity and the art of learning is to listen
  • darshanm
    darshanm Member Posts: 280
    When you assign additional cost through Item charge on your
    RM purchase, its value gets increased.

    Actly NAV checks the diff between, Cost Amnt(actual) and Cost posted to G/L fields of value entry table.

    The diif. is being posted to the G/L.
    Darshan Mungekar
    Senior Consultan

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