Average Cost

Business Central/NAV User Forum
1

Hello Guru’s,

Let me Explain the problem.

Navision Version 5.0 (SP3) Costing metod is FIFO

We some times receive Items as samples, so our company receives it with Zero Cost but however, it will be tagged to some shipping cost.

Some times, we also sell the samples depending on the Demand.

So, during sales, Navision is picking up the “Average Cost” as the source of this purchase came in without any cost. When we look at Average Cost in Item Card, it does not reflect correctly so I drilled down into the Average Cost Calculation table.

When I checked for other Items, the Average cost system calculated was correct for all items except this item.

Although, it is not a concern for us as we use FIFO method, just want to understand why it doesn’t sum up correctly. Is there any way to fix it?

Appreciate your prompt response!!

Thanks,

Jack.

2

If FIFO is chosen as costing method, Average cost is irrelevant.

When you sell your zero-costed samples, you get 100% profit, that’s all. (unless you haven’t added some cost as Charge(Item), say, logistics or some other indirect costs ).