a confusing value in the value entries of purchased item

Dear All,
I am currently reading whitepaper of costing for navision attain 3.6 = 3.7 = 4.0 (all are same, the pages number just the different). I am trying to understand page 14 - 15 but I am confusing the explanation in page 15, purchase, no. 2, it explained “…,a variance amount of LCY 18.” How the system calculating it, I can’ see it in my value entries of links item. I’ve done all the book said, but still can’t find the value. I assume it is : 165 - 150 + 3 = 18.
But it missed in the value entries, it is really contrary with the white paper. Do you find the same situation like me, any sharing idea or opinion or answer I really expected


Anyway, how to obtain password and login name for this site:
https://learning.msapoc.com/Login.aspx, I want to browse but can’t

Can you put the details of the pages in the post, I do not have the manual on me. Also are you using an item with the same costing method and following the steps given? Have you any modifications in this area?

This is an extract of the WP version 4.0 sp1:


This example, which describes a chain that is manufactured from purchased links, gives an overview of the various account types that are used in a typical scenario. The user has activated the expected cost posting option. The details are as follows:

Link: Costing method = Standard

Standard cost = LCY 1

Overhead rate = LCY 0.02

Chain: Costing method = Standard

Standard cost = LCY 150

Overhead rate = LCY 25

Work center: Direct cost per minute = LCY 2

Indirect cost % = 10%

#### Purchase

  1. The user purchases 150 links and posts the purchase order as received.

  2. The user posts the purchase order as invoiced. This results in an overhead amount of LCY 3 to be allocated and a variance amount of LCY 18.

2a. The interim accounts are cleared.

2b. The direct cost is posted.

2c. The indirect cost is calculated and posted.

2d. The purchase variance is calculated and posted (only for standard-cost items).

I think there is one info missing: the Direct Unit Cost to use in purchase order that should be 1.10.

Also the value entries are linked to Posted Invoice not to Receipt, or you can find all from Drill Down of Cost Amount (Actual) of Item Ledger Entry.

Dear Steven,

I am using the item with the same costing method and following the steps given, there is no modification I made.

I am agree about what patty said. She has posted and what she has posted that I ask here. I don’t know about 1.10 LCY that she wrote.



Hi Patty,

You wrote :

“I think there is one info missing: the Direct Unit Cost to use in purchase order that should be 1.10.”,

how did you conclude it…? I mean I agree that there maybe one info missing, but I don’t know where.

tks for your answer

1.1 is Total Direct Cost/Quantity = 165/150

usually the Direct Unit Cost is a known value, and Variance must be calculated

Variance = Direct Unit Cost - Discount + Overhead Rate - Standard Cost

therefore Direct Unit Cost is:

X + 0.02 - 1 = 18/150

X = 0.98 + 0.12 = 1.1

Dear Patty,

Tks a lot for your explanation. It’s more clear now to me. I think this topic can be closed.