Unit Amount in the Item Journal

user123
user123 Member Posts: 22
edited 2009-02-05 in NAV/Navision Classic Client
Hi,

I am new to NAV. Can anyone explain how the 'Unit Amount' is calculated in the item journal? :roll:

What is the difference between the 'Unit Cost' and the 'Unit Amount' in the item journal? I understand the 'Unit Cost' in the item journal line as calculated by adding overhead rate and indirect cost to the unit cost in the item card.

Appreciate an immediate response.

Thanks

Comments

  • vasilis6669
    vasilis6669 Member Posts: 109
    Hi,

    Unit amount is the selling amount of an item. Unit cost is the calculated purchase cost from the vendor or final manufactured cost. Depends from the costing method used.

    Hope that helps
  • Alex_Chow
    Alex_Chow Member Posts: 5,063
    I almost always use the Unit Amount. I never use the Unit Cost on the item journal. I think there were some costing problems back in version 2.0 where if you only put in the unit cost and not the unit amount, funky numbers will appear.
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  • austin
    austin Member Posts: 191
    Alex Chow wrote:
    I almost always use the Unit Amount. I never use the Unit Cost on the item journal. I think there were some costing problems back in version 2.0 where if you only put in the unit cost and not the unit amount, funky numbers will appear.


    That means even we do positive adjustments , Purchase (for example) , we better to use Unit amount field only.
    even we do Negitive adjust, sales(for example)then use Unit amount field

    is it correct ?
  • ritesh.singh
    ritesh.singh Member Posts: 123
    user123 wrote:
    Hi,

    I am new to NAV. Can anyone explain how the 'Unit Amount' is calculated in the item journal? :roll:

    What is the difference between the 'Unit Cost' and the 'Unit Amount' in the item journal? I understand the 'Unit Cost' in the item journal line as calculated by adding overhead rate and indirect cost to the unit cost in the item card.

    Hi,

    I would suggest you to try to use F1 for any help regarding fields other functionality.

    to your question the help reads like this...
    Unit Amount Field
    The Item Journal Line Table


    This field shows the price of one unit of the item on the journal line.

    Depending on what has been selected in the Entry Type field, this field shows either a unit cost or a unit price. When the Item No. field is filled in, the program automatically retrieves the price from one of the following fields on the item card:

    Purchase:
    The field shows the last direct cost for one unit of the item on the journal line.

    Sales:
    The field shows the unit price for one unit of the item on the journal line.

    Positive Adjmt.:
    The field shows the unit cost for one unit of the item on the journal line.

    Negative Adjmt.:
    The field shows the unit cost for one unit of the item on the journal line.

    Consumption:
    The field shows the unit cost for one unit of the item on the journal line.

    Unit Cost Field
    The Item Journal Line Table


    This field shows the unit cost of the item on the line.

    If the Costing Method field on the item card is set to Standard, the program will automatically retrieve the figure from the Unit Cost field on the item card.

    If this is not the case, and the entry type of the item journal line is not Purchase, the program calculates the unit cost as Unit Amount plus the Indirect Cost %. The program also adds the Overhead Rate to the unit cost, if an overhead rate has been defined on the item card.

    If the entry type of the item journal line is Purchase, the program calculates the unit cost as the Unit Amount, and the program posts the indirect costs and overhead separately when you post the item journal line.

    The unit cost represents the value that the item has in inventory. It has no effect on the amounts on the item journal line.

    Thanks,
    Ritesh K Singh
  • user123
    user123 Member Posts: 22
    Hi,

    Thanks for all the help. But still, I am not very clear about this. I have tried the following scenario.

    I have created a new item. Costing Method-FIFO
    Indirect Cost%-10
    Last Direct Cost-80
    Unit Price-130
    Gen.Product Posting Group-NO VAT, VAT Product Posting Group-NO VAT
    Inventory Posting Group-FINISHED

    Then I have purachsed 100 of the item @ 80. Then the unit cost is updated to 88, which I understand.
    In the item journal, when I try to do a positive adjustment, the Unit Amount is shown as 80 and Unit Cost 96.80 (The calculation of Unit Cost is clear to me, but not the Unit Amount.

    Then again I purchase 100 @ 90. Then the Unit Cost is updated to 93.5 ((8800+9900)/200)
    In the Item Journal when I try to do a positive adjustment, the Unit Amount is shown as 85 :-k
    I dont understand how 85 becomes the Unit Amount!!!!!!!!!!!!!!!!!!!!!!!

    Can anyone help please???????

    Thanks
  • ritesh.singh
    ritesh.singh Member Posts: 123
    Unit Amount is calculated like this

    "Unit Amount" := ROUND(
    ((UnitCost - "Overhead Rate") * "Qty. per Unit of Measure") / (1 + "Indirect Cost %" / 100),
    GLSetup."Unit-Amount Rounding Precision");
    Thanks,
    Ritesh K Singh
  • user123
    user123 Member Posts: 22
    Thanks alot ritesh.singh!!!!!!!!!!! :D:D:D

    Your answer solved my issue :)

    Thanks for everyone again for all the replies!!!!!

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