Hello everyone, Is there anyone out there who can explain to me how and why the costs are changed when i make a correction in the stock amount ? When I make a positive stock correction it lowers my costs and with a negative correction my cost is going up at this time I mis the balance between the sales and the costs it also corrects my stock value and ofcourse the amount of goods that I think goes well ??? and it seems to me that navision does not calculate with FIFO but with the average cost in an ongoing calculation. So when the last average price is 100 and the next purchase is 200 it will calculate an average costprice of 150. when i sell the first one for lets say 125 i make a loss off 25 in this transaction, I don’t understand what this has to do with FIFO Can you please help me , because we are already working from 1 januari 2003 and the only thing i get reported from my navision is totaly nonsens thanx Cor van Houtum
Hi, Have you applied all HOTFIXES?If not please apply the hotfixes and then test it.
No my vendor has set-up the system and i think that he has not put any hot-fixes on the server at all. next thursday the guy’s are comming again and then I will ask hem. Are you sure it has something to do with hot-fixes ???
Hi, Actually I was testing the FIFO costing in Navision 3.6 before applying the Hotfixes. It was not working properly.After applying the hotfixes it’s working fine.
Hi Cor Your reseller should be able to explain to you the costing processes.
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and it seems to me that navision does not calculate with FIFO but with the average cost in an ongoing calculation.
This statement is true all the way through processing until the supplier invoice is applied, at this point the system knows the actual FIFO cost and applies it to all of the relevant transactions. You will need to run the batch jobs adjust cost item entries and Post inventory cost to GL. I will say however that issues can arise if you remove stock before the supplier invoice has been applied as from memory the cost applied (and closed) is the current cost of the line - the average cost if the invoice has not been received or the actual cost if it has. There are also natural issues with reporting, if you have in stock a variety of costs for the same item and on a report the cost is shown in one line per item, this will generally be the unit cost, which is the average cost, and can be confusing. In a true FIFO environment some reports have to be specifically written for certain customers reporting needs (generally each need is slightly different). Hot fixes will help, but there are lots of standard processing errors that can be made, not to mention the correct setting up of the posting groups, and if you are on 3.60 the “Expected Cost” posting scenario and the “Exact Cost Reversing” function. I recommend you get your vendor back in the door and have scenarios ready and ask them to explain EXACTLY in your system why the transactions are occurring as they are. Oh and good luck [:D]
Hey Guys, Some thing I have noticed is demonstrated below. Entry Qty UC ADJ Cost AVG Cost Purchase 10 PCS @ 2$ 200 2 Purchase 10 PCS @ 2.4$ 250 2.2 Sale 5 PCS 120 2.2 Now with these when I run the Adjust Cost Item Entries then the Entries Change to Entry Qty UC ADJ Cost AVG Cost Purchase 10 PCS @ 2$ 200 2 Purchase 10 PCS @ 2.4$ 250 2.2 Sale 5 PCS 100 2 The Adjust Cost Item Entries and Post Inventory Cost to G/L batch jobs are the key. Although you have setup automatic cost posting. You must always run the Batch Jobs for this adjustment. Else you may end up with a Loss.