Calculate cost per unit in value entry

Business Central/NAV User Forum
1

Dear All,
I don’t understand about how navision calculating COGS and cost per unit. To make it clear I will
write down the detail of one item from positive adjustment, purchase and
sale as follows:
(+)adjustment
Posting date: 12/31/2000
Cost amount (Actual): 827,841,875 (LCY)
Invoiced Qty : 2165 PCS
Cost per Unit : 382,375.00 (LCY)

Purchase
Posting date: 01/06/2001
Cost amount (Actual): 18,889,325 (LCY)
Invoiced Qty : 52 PCS
Cost per Unit : 363,256.3 (LCY)

(+)Adjustment
Posting Date : 8/30/2001
Cost amount (Actual): 344,137.00 (LCY)
Invoiced Qty : 1 PCS
Cost per Unit : 344,137.00 (LCY)

Total inventory value = 827,841,875 + 18,889,325 + 344,137.00 = 847,075,337 (LCY)

Sale
Unit Price : 749,025.00 (LCY)
Posting date Doc. No. Applies-to Sales Amt (Act) Cost Amt (Act) Invoiced Cost/Unit
Entry Qty
1/8/2001 102004 0 0 0 0 382,375.00
1/17/2001 103010 0 636,723 -382,375 -1 382,375.00
1/17/2001 103018 0 3,745,125 -1,911,875 -5 382,375.00
8/28/2001 103031 0 749,025,000 -381,925,400 -1,000 381,925.40
8/28/2001 103031 909 0 -449,600 0 449.6
8/30/2006 103039 0 7,490,250 -3,615,182 -10 361,518.20
8/30/2006 103039 1003 0 -17,381 0 1,738.10
8/30/2006 103040 0 1,498,050 -688,274 -2 344,137.00
8/30/2006 103040 1007 0 -38,238 0 19,119.00
9/1/2006 103036 0 749,025,000 -381,554,000 -1,000 381,554.00
9/1/2006 103036 997 0 -821,000 0 821
9/1/2006 103037 0 74,902,500 -37,766,330 -100 377,663.30
9/1/2006 103037 999 0 -471,170 0 4,711.70
9/1/2006 103038 0 74,902,500 -37,341,850 -100 373,418.50
9/1/2006 103038 1001 0 -130,900 0 1,309.00

The costting method is FIFO. I’ve recorded that the last average cost LCY is 382,375.00 (LCY). Unit cost
is 344,137.00. The total cost per unit of documents that I am confusing about:

  1. The total cost per unit of doc. no. 103038 is 373,418.5 + 1,309.00 = 374,727.50 (LCY)
  2. The total cost per unit of doc. no. 103039 & 103040 are 344,137.00 + 19,119.00 = 363,256.30 (LCY)
  3. The total cost per unit of doc. no. 103031, 103036 and 103037 = 382,375.00 (LCY)

No. 3 and no. 2 are clear to me, but I can’t find how the system calculated no. 1. It must be inventory
adjustment applied to ite based on FIFO method, I’ve tried hard but nothing from where it calculated.
TOtal COGS is 847,075,337 LCY. The inventory has been empty. The average cost (LCY) = 382,375.00 and
Unit cost is 344,137.00 (LCY). When I check the variance of total inventory value - COGS (LCY) = 0
The effect is the average cost (LCY) is 0. What does it means of this ? does it means that inventory value is
zero and no stock ?
I apreciate your time and patience to read and answer my questions. tku very much

Rgds,

P.S.

if the appearance seems not perpect here, I could upload the txt file to this website after allowance is received.

2

Have you run the Adjust Cost and Post Inventory Cost to G/L?

If so, the final adjustments will sort it all out.

Navision uses an average value or last cost when adding the COGS value on the sales line. Not worth using or reporting on in my opinion. I refer to it as a notational value.

To check your data, use the test company and set up a new item and post each part (of the sequence) and check the Value Entry table at each stage.

See what the Sales Line COGS is based on:

  1. Zero Stock,

  2. with stock (posted from a journal).

As always, by checking each situation and writing it up using your own product codes will help in future when explaining to the bean counters (accountants).

A bit of extra code that some users employ is to update the COGS value on the Posted Sales Invoice line as part of the Post Inventory Cost to G/L routine. This helps if you want to use the detail from the line in reports. Cannot see it myself, there are other ways of getting the information.