Quarterly average posting

johnson_alonso · 2006-03-13

Dear all,
I am researching costing methods of navision which one of them I focus now is average costing. Could I adjust the average costing quarterly and then will see if there will be a change in the unit cost of items ? How can I do that ? Could I select quarter in automatic cost adjustment field for that ? or there is another way beside adjust cost-item entries ? I'll thank you for the answers given beforehand.

rgds,
Johnson Alonso

"Immortal rites"

kine · 2006-03-13

1) Do not use the "automatic cost adjustment" on heavily used database. You need to know that each posting will run the adjustment.

2) Please, use average costing only if you have some serious reason. You need to know, that each back-dated posting will cause adjustment for whole period for this item (for example if you post something with posting date one month back, all entries for all items which were on this document and are posted after the posting date will be adjusted - it means, you need to count with long running adjustment batches).

3) It is hard to correct data when you are using Average cost

4) FIFO is much better and if your management wants to see some average costs, you can calculate them on some report for reporting purposes only...

johnson_alonso · 2006-03-16

Tks for the answer, indeed I have read in manual and also from webcast downloaded by me suggested to avoid to use automatic cost posting. If I use another costing method beside average, it will be dangerous because the company will refuse, I have no choice. in the system itselfs maybe hard to correct data but in the company it won't be. In the glass industry like autoglass, margarine industry, beverage industry like coke, pepsi etc.. will use average costing I think. how to calculate cost of parent item/product in the confectionary industry ? I mean if I want to make 1000 pcs peppermint, meanwhile my mixing capacity 2000, how to cope with that ?

rgds,
Johnson Alonso

Quarterly average posting

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