Perpetual Method

wiro · 2010-06-30

Forgive my ignorance.
Please help ME!

Setting on NAV in module Warehouse | Setup | Inventory Setup | No Automatic Cost Posting.

This setting will result in Purchase Posted Invoice (PO Invoice) :

[D] Purchase
[C] AP

And when i run Post Inventory Cost to GL, it will be create 1 jurnal :

[D] Inventory
[C] Direct Cost Applied

My question is : how if i do not want use Purchase and Direct Cost Applied, so there will be only the journal when Purchase Posted Invoice is :

[D] Inventory
[C] AP

Thanx in advance.

ssingla · 2010-06-30

This requirement is against the basic principle of inventory posting of NAV and hence cannot be acheived. You need to make the user understand the concept/logic of NAV postings.

Alex_Chow · 2010-06-30

wiro wrote:

My question is : how if i do not want use Purchase and Direct Cost Applied, so there will be only the journal when Purchase Posted Invoice is :

[D] Inventory
[C] AP

Thanx in advance.

You can lump them into the same account.

On another note, you absolutely need the purchase and the direct cost applied account. This handles the variances that will result on vendor returns.

In addition, it may be hard for you to calculate the COGS on your financial statement depending on how it's laid out.

http://mibuso.com/blogs/alexchow/2009/03/17/how-to-calculate-cogs-on-account-schedules-the-cpa-way/

wiro · 2010-07-01

This requirement is against the basic principle of inventory posting of NAV and hence cannot be acheived. You need to make the user understand the concept/logic of NAV postings.

Dear Sandeep,

thank you for the reply.

One question from your statement. So do you think basic principle of inventory posting of NAV is compliant to the standard international inventory posting concept?

thank you

ssingla · 2010-07-01

Yes it is compliant infact accounting standard does not specify the entries to be posted. They only suggest/mandates the end results i.e. presentation of financial balances or treatment of specific instances/scenarios/cases.

Perpetual Method

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