Inventoriable Costs, Total & Unit Cost

taher.bha
taher.bha Member Posts: 48
edited 2008-07-08 in NAV/Navision Classic Client
Hi all,
Does anyone have an idea about the difference between Unit Cost on the Item Card and Inventoriable Costs, Total which may be accessed through the F9 shortcut on the Item card and then choose "Cost Specification" to be shown as Lines .
For most items the amount calculated is the same but i got one exception for which the value on Inventoriable Costs, Total is the same as the value calculated on a reference Excel worksheet but is higher than the Unit Cost. Average Costing Method is used for all the Items. I don't currently have the formula used for excel calculation but i think it should be a standard average cost calculation.

Thanks in advance for any help/suggestion.

Comments

  • Scott_Frappier
    Scott_Frappier Member Posts: 90
    taher.bha:

    The Inventoriable Costs are costs (i.e. Direct Cost, Indirect Cost, Revaluations, et cetera) that have an impact on the asset value on the balance sheet. Basically, these transactions post value to the G/L Entry.

    In Dynamics NAV, the Unit Cost field is the calculated average for all item/variant combinations. It is an item average as it is on the item card. The Unit Costs on SKU's break this detail even further - by whatever combination exists as the primary key (i.e. Item/Variant/Location).

    If you have the costing method set to Average, and the Inventory Setup has the Average Cost Calc. Type set to "Item", I would expect the sum total divided by the total on-hand quantity to equal the unit cost on the item card.

    What version of Microsoft Dynamics NAV are you running? Previous versions had issues in which miscalculations would occur. In Dynamics NAV 5.0 SP1, they re-did the costing engine to make it more explainable and auditable - I have run into very few issues with average costing in a 5.0 SP1 environment.

    Also note - Dynamics NAV uses a perpetual average cost system (rolling) - hopefully the spreadsheet that you are using uses the same logic as it is fairly complex.
    Scott Frappier
    Vice President, Deployment Operations

    Symbiant Technologies, Inc.
    http://www.symbiantsolutions.com
  • Deep
    Deep Member Posts: 569
    Inventoriable costs are associated with the expenses incurred on the main course of business activity, like conversion cost in manufacturing, or purchase of goods for trading etc.

    Non inventoriable costs are all those costs which are different from the above aspect. For example, you can take depreciation, repairs etc. which are included in the generation of income.
    Regards,

    Deep
    India
  • taher.bha
    taher.bha Member Posts: 48
    Thanks a lot Scott and Deep for the explanation.
    Im my case :
    - Average Cost Calc. Type set to "Item"
    - Automatic Cost adjustement is set to "Always"
    - Average Cost Period is "Day"
    Am currently using Nav 5.0. I'll try to carry out the tests on Nav 5.0 SP1.
    Thx again.

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