FIFO Costing

krvenkata
krvenkata Member Posts: 154
edited 2012-02-20 in NAV/Navision Classic Client
I have a scenario for FIFO Costing for which i feel NAV Calculation is not correct

Let me explain for an Item which has FIFO costing method defined in the Item card

1) Purchase Invoice - 01-Feb-2012, Qty 3, Purchase price -10
2) Sales Invoice - 01-Feb-2012, Qty 3, Sales Price - 15

Now the Sales is closed with the Purchase with cost of 10...Still i did not run the adjust cost entries and post cost to GL

Now i realise, i forgot to put one Purchase Invoice on 31-Jan-2012 and i put in the system with following values

1) Purchase Invoice - 31-Jan-2012, Qty -3, Purchase Price - 12

Now i run the Adjust cost entry batch job and Post cost to GL....

But now NAV did not adjust the cost of Sales to 36 (3 *12) and the cost remains as 10 (3*10)

Is this how the system works?

Thanks

Comments

  • ssingla
    ssingla Member Posts: 2,973
    Yes because system has applied the entries in FIFO mode (first posted first applied). Back date entry always creates problem with application. The only remedy available is to use Application Worksheet to rectify the system created application of entries.
    CA Sandeep Singla
    http://ssdynamics.co.in
  • krvenkata
    krvenkata Member Posts: 154
    Dear Mr. Singla

    Thanks for the reply. This is an issue we are facing with a client in Retail (FMCG) Industry where the volume of transactions are huge. So manual application is not practically possible.

    Is there any other solution or work around possible?

    Thanks
  • ssingla
    ssingla Member Posts: 2,973
    I am not a retail expert and you should consult some retail expert for this. Your requirement is common to retail business and they must have some sort of solution for this.

    However I remember I made a batch job for a client to unapply and apply of all the application entries. The downside was that there were lot of Value Entries.
    CA Sandeep Singla
    http://ssdynamics.co.in

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