Credit Note effect on item costing.· The client needs to know the effect of credit note on item costing. · Example:
The order was raised for item “Lettuce Iceberg” @ 100 per kgs. But the rate was not finalized at the time of booking order. After receiving the material the rate get’s finalized at 105 per kgs. Now if a Credit Note is raised for the difference amount, how will it effect the item costing?
Take a look at http://dynamicsuser.net/blogs/nunomaia/archive/2008/02/27/do-i-need-to-use-exact-cost-reversing.aspx
It really depends “how” you are raising the credit note, tell me this and I will tell you how is affects the costing of the item!
Item, Item Charge, GL etc as the type on the credit memo.
i had a examined it once, and noted the following:
IF in the purchase and payable setup, “exact cost reversing” is not selected, it will take the unit cost on the item card.
if exact cost reversing is slelected, you will be prompted when posting the credit memo to fill “apply from entry” then it will take the exact cost of the item entry that you applied it to
Costing can be tricky in Navision.
In distinct circumstances, final costing can be obtained from different places. One situation that can lead to errors is trusting original costing before posting. You could insert a costing value in a journal but after running adjust cost, value be changed.