Usually, we use Standard Cost for finished goods. After production, we can get material variance, capacity variance, etc. But customer always has a requirement to allocate the cost variance for sales item. For example, 100 pcs finished goods we get in this month. The total cost variance is $300. And 60 pcs finished goods are sold out this month. So there will be $180 to be add into COGS. The reason why customer wants to allocate the variance is they want to analyze the sales profit more accurately. It looks like there is no function to meet this requirement in standard Navision. So I want to customized the system. Any one has experience on this topic before?
You will not get this out as standard. If you are looking to automate this as opposed to manually journalling the costs I suggest you load the question in the developers forum!
Hi WWS, You cant do this with the Navision standard costing. If the above note you have mentioned is a requirement by the customer to analyse true profit for the Sales then they should move either to the Average or Specific costing method. In standard costing all the variance posted and calculated is always a Manufacturing Variance. If you want to do this requirement with the current setup then you have to make a report that will get the variance for each sale. This is easily handled if you are using the Lot No. so you can track the exact value entries that cause the variance through the Lot No. which is present on the Item ledger entries of both the Output and the sales.