Hello Everyone
Can any one tell me how FIFO method is work in Navision.
FIFO works by setting it up on the Item. Then it will handle that when you sell your inventory then the inventory which was first in is first out. So the oldest is sold first.
thanks for the answer
but i want to know regarding this
if i have to find out the cost of that particular item that has been change during the time then how the FIFO will work , because it always reflect the unit price of the item.
The FIFO costing method values the inventory decrease by taking the value of the first inventory increases on inventory
The program calculates the Unit Cost (LCY) Field on the purchase line or Unit Cost field on the item journal line according to this formula:
“Unit Cost (LCY)” = (“Direct Unit Cost” - (“Discount Amount”/ Quantity)) * (1 + “Indirect Cost %” / 100)) + “Overhead Rate”
hi Vikas ,
Can u make it little clear what u want to say because here you just write the code how the Unit Cost is calculate.
If you have the following 3 pieces in inventory:
A) Purchased 1.1. - cost $10
B) Purchased 1.2. - cost $20
C) Purchased 1.3. - cost $10
Now if you sell two pieces, then the cost of the first sold is $10 and $20 of the second.
shailesh,
it is not a Navision technical question, it is a general Accounting theory question, to which Navision conforms. If you do not know what FIFO is, consult your accountants, they will explain you that easily.
well i think my query is not clear to you all,
my ques is that suppose i purchase certain item like this.
item 1 on date 15nov10 qty 10 at cost of $ 10.00
item 1 on date 16nov10 qty 20 at cost of $ 11.00
item 1 on date 17nov10 qty 10 at cost of $ 12.00
now if iam using the fifo method now suppose i hav an order of 35 qty
than according FIFO it should be like this
10 * $ 10 = $100
20* $ 11 = $ 220 and 5 * $ 12= $60
but now he taking only the unit price , than my question is that what is relevant of fifo,
any one has any idea how to slove this problem in navision.
thanks in advance
Is there any unit price on the item card.
Have you run the batch jobs avaliable for adjusting the Inventory Cost.
as for the unit price, if there is unit price than it take unit price
if there is not unit price than it will take the unit price of first purchase order means $10 to all the item which is wrong.
well can u tell whr r these batch jobs are in naivision
Financial Management ->Inventory ->Costing ->Adjust Item Costs/Prices OR Adjust Cost - Item Entries.
manish
as per u what i think these are the report which has to run
my ques after running these report will it work according to the fifo.
shailesh,
Costing info in SO/SI lines is grabbed from ItemCard upon creating the SO/SI, and is NOT necessarily precise, only approximate - thiws is by design, to speed up document entry.
You must run periodically both the batchjobs - ACIE already mentioned above and Post Inv. Cost to G/L, this will update cost to precise values according to Costing method specified.
After that Value entries and G/L accounts will reflect the correct amounts, BUT lines in SO/SI are NEVER updated, they still have the initial approx value.
That for you can not use document lines for any reporting purposes except reprinting the document, if needed. Any other, and especially costing info must be fetched from ILE (and ValueEntries, but ILE includes FlowFields summarizing corresponding Value entries)
Remember, that if afterwards you post some ItemCharges, adding additional cost, you must run the batchjobs again. How regularily the batchjobs are run, depends in transaction amount - some users do it every night, some - once a week or month.