COGS report and variable cost in manufacturing

Business Central/NAV User Forum
1

Dear All,
I don’t know where to find COGS cost report in NAV. Is it available ? or can it be considered as same as inventory valuation report ?
I also don’t understand where I can record or calculate variable cost in Navision, as there
are raw-material movements in the process like multi-input and multi-department and also there
are many unit process productions.
I appreciate your answer so much.

Rgds,

2

Hi Andreas

The inventory valuation tells you the value of your inventory - what should you COGS report tell you? The cost of the items sold? If that is the case you can see how different they are.

The capturing of variable costs will depend upon your processing and how your business wants to handle them compared to the costing method. What are you including as “your” variable cost? If it is an item variation these simply get recorded in the production journal, if it is time variation again these are captured in the production journal. If you are referring to more pure variable costs in production like electricity then are you recording them in production? I doubt it, instead it is rolled into the standard cost and the variable burdens are journalled into the accounts to see the variance and true cost of sale. But as I said at the start - it all depends upon how you work.

3

There is not a report relate to COGS, but it must be created. It maybe contains
expense and cost of productions, or beginning finish good inventory value and ending
finish good inventory value. I’ve seen in a mfg costing or cost accounting book tell
about it.

rgds,

4

I am sure there are many things in costing and accounting books that are not in Navisaion - you need to be able to apply your knowledge not just demand something exists because it is written somewhere!

What are you using the report for and what should it contain? Start here and then probably write your own report.

5

Dear Steven, All,

Tks for your reply, here the report contents I actually need :

Report COGS for all items
COGM section

  1. Raw material consumption
  2. Beginning inventory 010101
  3. Total Purchase Raw Material
  4. Available raw material for production
  5. Ending inventory 123101
  6. Grand total raw material consumed
  7. Direct labor cost
  8. Fabrication cost :
    a. Additional raw material
    b. Indirect labor
    c. Depreciation
    d. Maintenance and repairment
    e. Salary
    f. Electric, Water and telephone,Steam
    g. Insurance
    h. Amortisation
    i. others
    Total factory cost (manufacturing cost)
    WIP (010101)
    Prodution COst total = (Mfg cost + WIP)
    WIP (123101)

COGM = [prod. cost total - WIP (123101)]

Sales section
COGS
FG inventory (010101)
COGM (010101 - 123101)

Available product for sale (FG inventory + COGM)
FG inventory (123101)
COGS = (Available product for sale - FG inventory (123101))

Rgds,

6

You’ll have to write it.

But question 1 - are you capturing the separate fabrication costs per item unit in Navision? If not how do you intend to get them on the report?