Rounding entry after adjust cost

ria
ria Member Posts: 43
edited 2008-04-25 in NAV/Navision Classic Client
Hi all,

I have a problem, i have purchase entry that applied with some consumption entry. I created this purchase entry some times ago. But recently, i look at the GL entries of this puchase entry, there are 2 new line created by system which the description is "Rounding". Why this rounding appeared?
Can any body help me?

Thx
Thanks & Regards

Ria

Answers

  • jreynolds
    jreynolds Member Posts: 175
    Rounding entries are created so that the cost of a positive item ledger entry is equal to the total cost of the negative entries that are applied against it. Suppose you purchase 3 units of an item at a total of 10.00 and you consume them 1 at a time. The cost of each consumption entry will be 3.33 (the precision may be different here depending on your amount rounding precision in G/L setup). So the purchase entry has a cost of 10.00 and the total of the consumption entries is 9.99. NAV will create a rounding entry for the purchase for -0.01. Now the cost of the purchase will equal the total cost of the consumption entries (9.99 in both cases). The rounding entry is created by the adjust cost process and only when the remaining quantity on the positive entry is zero.
  • ria
    ria Member Posts: 43
    Hi Jreynolds,

    thank you for your explanation be4, i have check again the cost amount actual on the purchase entries and the consumption entries, and i get the result there are different between the amount, and the amount same with rounding that created by system.

    Thanx again to you.. :)
    Thanks & Regards

    Ria

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