Applies to entry

Hi ,

when appies-to-entry field in item ledger entry must be filled ?

Everytime i have application entry for item ledger entry … must i have applies-to-entry ?

thank you

if i am having average cost ----> costing methood

Should the application entries must be filled ?

You do not care about this. Navision does this automatically - usually based on FIFO or LIFO or applies to specific entry when using serial/lot numbers.

Jouhayna,

Please be more descriptive - what did you mean by application entries? POs<>Payments? These should be applied always, and not only for costing purposes…

I will specify more … I need to undersand thi sto understand how the system is treating with costs …

Listen I will explain in very simply

Item ----> item ledger entry------> applied entries

if i am havin costing method average ----> those applied entries are not filled

if i am having costing method standard —> those applied entries are filled

is this normal ?

Yes, this is normal. Applied entries allways exist, but when using average-method they are not shown. But if you look into table 339 you will see the applications.

Why it is like this? Don’t know. I guess that someone somewhere has a good explanation…

Have a nice day!

thank you anfinnur , direct answer i guess …I will wait that someone somewhere who has a good explanation… becuause i was hoping to have applied entries as standard .

I have another question related also to this issue .

the Applies_to _entry field in item ledger entry …Is it only filled when we have fixed application entry .?.. i mean when we specify apply to entry either in item journal or document …

OR it must be filled when i have applied entries

thank you for yout help

Correct.

As the “item application” is not relevant for the “average” costing. It is not really required to proof that a certain purchase applies to a certain sale. Average is always average.

Example:

Buying ten wheels for 20 each makes 200 stock value
Buying another 5 wheels for 25 makes up a total stock value of 325.

When selling a wheel with FIFO selected, the system will sell this at costs of 20. To proof the costs of 20 the sale applies to the first purchase and the item application entries are shown. The stock value is now 305.

When selling a wheel with LIFO selected, the system will sell this at costs of 25. To proof the costs of 25 the sale applies to the last purchase and the item application entries are shown. The stock value is now 300.

When selling on average costs, these are calculated like this: (1020 + 525) / 15 = 21,67.
As these costs are not related to either the first or the second sale, it does purely not make any sense to show the entries in this case. Of course the sales are still assigned to purchases (FIFO is used), but just to provide the “remaining quantity” of entries. If this would not be done this way, all item ledger entries in the system would stay “open” forever.

But again, as this is not to proof the costing, it is not shown.

thank you anfinnur and thomas for yout help …

I appreiciate your support

than you again

Jouhayna,
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