Cost of Goods associated after Goods sold

Hi In a recent implementation the customer “bought” stock from a sister company, and whilst liable for the stock from insurances purposes they were not liable for the cost of the stock until they sold it. This means stock can sit on shelves for years. From an accounting perspective they wanted no costs of goods entering the ledger until the goods were sold. I have handled this by running a standard purchase order, which they receive in (lots of lines as the items have serial numbers). Then when they process a sales invoice they manully create a purchase journal for the cost of the item against the sister company. The sister company (also using Navision) never issue an invoice for the goods. This approach has the disadvantage of leaving the purchase orders always open, but simplicity in creating the purchase journal rather than manually creating an invoice and searching for the correct purchase order by serial number to receipt against. The accountant also wanted no costs of goods sold entering the ledger so cost posting was turned off and will never be run. I would be interested to hear how others would have implemented the site. Cheers Steve

Hi, I did two implementations: - Post receipt from Order. Every week user runs special batch job that generates Purchase Invoice. This Purchase Invoice can contain lines from multiple Orders. Sometimes user should run standard periodic activity “Close Invoiced Orders”. - Post Order as Receipt And Invoice. At the end of accounting period user run special periodic activity that reverse GL for unsold items. Valentin Gvozdev BMI Inc.

Hi Valentin I think I would have approached it as you did in scenario 1, but unfortunately the customer had budgetary considerations so no systenms modifications could be undertaken at the time (it may change in the future), and hence a manual approach had to be adopted. However - you did two implementations and approached teh same problem from different angles, was teh customer processing different, or did scenario 1 not work successfully. I would be interested to know why the change in approach between teh two customers. Steve

Hi, Both of this approaches required only 1 report. I do not consider this as modification because you do not need to spend additional time for upgrade (I never saw implementation without additional reports). First approach was implemented on client that does not allow returns (let say very rare) and consignment period 3-6 months. Second was implemented for client with 50% of returns level. In Navision you must post Invoice to be able close Order. So we decided to post it when we ship it and post credit memo on return. Valentin Gvozdev BMI Inc.