Cost Accounting

Hi all! Well, this is maybe a stupid question … but I have some reason for it … [:I] What features/modules are provided in NAVISION 3.70 (W1) to perform a “Cost Accounting”? Is it just Dimensions & Analyzes? Any modules? I’m asking, because in Germany we have a specific module for this purpose and I’m looking for something similar for an installation in Portugal (3.70) … Best regards, Jörg

What kind of cost? Item Cost Accounting? Job Cost Accounting? Manufacture Cost Accounting? G/L Expense Accounting? Anywho, any one of those cost mentioned above is supported in Navision.

Precisely, it is “Cost Center Accounting”. Means, any kinds of costs are distributed on several “Cost Centers” and “Cost Units”, using several “Cost Element”. Basically, this could be handled with usin Dimensions; e.g. Global 1 “Cost Center”, Global 2 “Cost Unit”, so every finacial posting could be splitted into these dimensions. What we need to do - here an example: We have 100 Stores, each represents a Customer and a Cost Center. Now we have costs for a new EDI system of 10000 EUR. Now, these costs have to be splitted and assigned to each store - Cost Center - in this case 100 EUR per Cost Center. So we can see, how many Costs each Store has caused within a certain period. It also has to be possible, to transfer costs from one Cost Center to another …

Uh… I think you’ve just answered your own question?

Oh, really? Please enlighten me … If I have an invoice about 1000 EUR (posted to one account) how can I distribute the amount on 100 different Dimension values (Dimension Code = COSTCENTER, value = Store No.)? Maybe I just don’t see the wood because if the trees before my eyes …

Post your cost to temporary G/L Account, then You can use Reccuring Journals to cancel that temporary G/L Account and post cost across diferent Dimensions/Accounts. By, Stanko

Yep, that’s what I was afraid of … So, this would mean, I have to distribute cost like this: 10000 Invoice Account 1000 EUR 20000 Costs Balance Account -200 EUR DIM CC: 1 30000 Costs Balance Account -200 EUR DIM CC: 2 40000 Costs Balance Account -200 EUR DIM CC: 3 50000 Costs Balance Account -200 EUR DIM CC: 4 60000 Costs Balance Account -200 EUR DIM CC: 5 Is that all the NAVISION Standard provides?

With a little help of Allocation functions on Reccuring Journals, you can prepare template for cost distribution, and using this like a tool again and again and again and … yust another think, try to press F1 on Reccuring Journal. By, Stanko


Is that all the NAVISION Standard provides?

Unfortunately yes, there are just the recurring journals for automating periodic posting or distribution task, which is sometimes too little functionality for posting one time distributions or deferred credits… I guess though, with a couple of reports you could automate the recurring journal line creation that fits your needs to distribute these kind of cost. Saludos Nils

The allocation journal is actually pretty flexible regarding the allocation of the cost per dimension. You can allocate based on the the percentage, amount, even reclass the whole account balance. What other functions did you have in mind?

Hi guys! Thanks for your advice! Well, I think the standard features will not fulfill all our customers wishes - and as I’m not the responsible consultant here, i don’t know too many details, sorry - but we’re talking about something like “Chart of Cost Accounts”, “Cost Center Groups”, Budgets on “Cost Centers” and/or “Cost Center Groups”, “Cost Transfers”, and stuff like that … I think we will investigate if it’s possible to modify the German module to fulfill the Portugese requirements … Kind regards,

Hi Jörg, Basically, the portuguese “Cost Accounting” (literal translation) requirement is fulfilled by using Dimensions. The PT version has no special functionality to specifically handle it because - in essence - Dimensions are just it. We can sometimes make a big fuss about it in Portugal, but it really is nothing special (technology-wise, not accounting-wise, of course). The purpose is to basically simplify the Chart of Accounts and to reduce the number of G/L Accounts to a minimum. The idea also being that the chart of accounts doesn’t need to reflect any information internal to the company. But, however we try to look at it, it just looks more and more what Dimensions do. So, I believe that with proper training and good knowledge of the system (the Recurring Journal trick, for example), it is easy to achieve the expectations of portuguese users. Anyway, I’m quite curious, can you tell us what does the German granule do? Does it elaborate on the Dimensions logic or is it totally unrelated?

Hi Nelson, Thanks for your advice! Yep, I basically thought Dimensions would be enough (witth a little programming around), but as you say: They’re makin’ a big fuss of it … Well, the German AddOn provides a kind of “Side Accountancy”, of course using the Dimensions but with additional highly sophisticated features. Unfortunately, I don’t have a, English documenation, and I’m not sure if I can translate the specific terms [:I] Here is a link to the description of the creator of this module - in German, sorry:

Sorry, actually the literal translation would be “Analytic Accounting” (or something thereabout).