We’ve been using NAV inventory controls with the setup of stock items being receipted having costs going to the G/L stock account and when issued posting to jobs and then moving to the materials G/L account so it’s a pretty straightforward setup that allows us to monitor stock levels and allocate costs on issue.
I’ve now been asked to have items being purchased going straight to the materials account and job on receipt but still have a stock holding that can be issued out, i.e. all costs posted to job right away but quantity in stores still tracked and issued on use.
Basically the current setup is for general stock so costs can only be allocated on issue to the job but we want costs going to job right away but still tracking inventory levels (essentially splitting costs and quantity).
I’m not sure if this is possible and what setup is needed so any advice would be appreciated!
So I think you want stock to be booked as a purchase cost (charge to profit and loss) when receipted rather than as goods received not invoiced (which sits in the balance sheet). Then when journalled into a job the cost of the stock will be booked against the job.
You’re correct with charging it to profit and loss right away but the main issue we have is that we’re being asked for everything to to go against the job from point of order. Previous to this we just had general stock anyone could use so there is a stock control account in the balance sheet with no dimensions attached and the job journal from there is a fairly straightforward process.
My thoughts were changing the posting groups so everything goes to the materials P/L account with relevant dimensions on this account being made mandatory (including job).
However, I’m not sure where the stock would then be journaled to once it was actually being used because the costs would be sitting in the location and the job already.
Hopefully this makes more sense and isn’t more confusing!
Thanks that all makes sense bar you mention of code mandatory on the dimensions. Do you have a job dimension as well as job number? If so presume there is a process (or some bespoke code) to make sure these are the same?
The best way to charge stock on purchase is to make a change to the General Posting Setup and Inventory Posting Setup and Nav will then deal with the impact of receipt and invoice postings. Are you familiar with these set up tables? If not I can send you a link to 2009 RTC screen shots on our web site.
I presume you only need to account for these postings on receipt of an order, for example, and not on creating the order?
Yeah we have a project dimension which is the same as the job number. There are another two mandatory dimensions on the PL accounts for zone and business unit.
And also yes to the second question it’s only on receipt of order.
I may be missing something obvious but if items are received to a location and also charged to the job then where would these be journaled out to? We would normally use a job journal to take costs from location to job (and associated dimensions) but if already on the job would where does it go?