Automatic Cost Posting - Pro's and Con's

We are a trading company with some manufacturing activities and use Navision 3.10. We have both Automatic Cost Posting AND Expected Cost Posting checked. I understand how these functions affect the way Navision handles Inventory Costing (I carefully read all the items concerned in this forum [:D]). I also know that these function takes care of an enormous amount of G/L entries. I actually could have made this topic a poll, but I just want to have some opinions from you guys out of practise about this subject: what are the pro’s and con’s of Automatic Cost Posting? I really appreciate your opinion!

Hy Michiel, I don’t see any particular advantage in using Automatici Cost Posting for two reason: 1. if you want to take care of inventory costing (value of items located) i suggest the creation of a report ad hoc, in which you choose what you want to monitor. 2. The System has to write much more datas (you use also the expected cost posting) so you you will have to take care about the total performance in the future, having a look also to the size of the tables involved in the process. I don’t know if in your case there was a specific reason of doing that, but in my experience there’s no need in using an inventory set up like that. Bye

This is really dependant on local customs. For instance, the Automatic Cost Posting, and Acrreud Receipts function (expected costs), were both added to Navision for the US market, and here every implementation needs them. Most Europen countires do not have a direct requirement for the the Auto Posting featuer, ut its a nice to have. In the UK, Expected funtion is an “expected function” if you want to make a sale. In reality this is not a question that can be answer at a global level.

No more opinions on this subject? Too bad…[:(]

In our implementations In Australia , that we have done we have always had Automatic cost posting turned on. However, after attending the Inventory Costing training course (3.60 version), we will assess for each client if in fact it is advantage or not. Our clients tend to import items from overseas, and we use item charges extensively. The Australian standard is in the majority of cases to set purchased items to use average costing. The problem with the Inventory periodic activities then is that the costs are adjusted on the item entries, but sales lines are not amended (so Gross Profit is not accurate, however I believe that this will be eventually resolved). In other words, each implementation needs to be analysed to see the best option for them.

To aid auditability at the start of a new system, I ususally switch the auto posting on. You can then always check on an individual document update that the right (or example) COGS are being posted and so one. Because the batch job posts summary transactions this is not so easy to do. Once the system has ‘settled’ and the users are confident with the postings, you may choose to switch it off for performance/no. of postings reasons. The expected cost posting is very much down the company policy - do they want GRNI and GDNI postings or not. Only problem is it doesn’t work with item charges which is a shame.

HI Adam, In the batch posting, you can select to post individual transactions instead of in classic Batch mode, thus you get the Navigate feature you mention, and you have ocntrol over posting.

Hi Guys, Pros: 1. The valuation of inventory with automatic cost posting can be reconciled to G/L at end of any day. 2. The Amount of time required to process the batch posting will be lesser when you use the Auto Cost Post. 3. To see the effect of a Purchase on your Inventory cost you need not have to wait to the end of the Month or till the Batch Job. Cons: 1. Although the Expected cost posting feature allows to accrue the expected PO costs, the system cannot use this expected cost as a valuation. The users estimated cost on PO must be very realistic. If not given a time lag between Goods receipt and Supplier Invoice is over 1 financial period for Eg: a Month can cause a lot of variation in the G/L. 2. THere is a lot of inventory costing (G/L entries) created for every entry. Where as using the Batch Job you can summarise the G/L posting per Inventory Posting Group.