Item Charge Usage

Is it possible to use Item Charges to add additional manufacturing costs to an item, similar to the way you can use BOMs? I would like to avoid using BOMs in our situation as the items used in creation change constantly and want to avoid creating a large inventory list of items that will be used infrequently. Could we purchase an item from a vendor, then use item charges to add to the cost of the item for the work done by other vendors on that same item? Item A (total cost)= A (initial purchase cost) + B (additional manufacturing cost) *where cost B, could be 1 to 8 seperate vendors. And would it correctly reflect the inventory value of the finished item if items are left in stock after completion?

My suggestion is to use revaluation journal. If you use Item Charge, it will tie to Purchase Order so that the charge will bill to the “Purchase” vendor instead of “Manufacturing” vendor. In this case, using Revaluation Journal is a better way. In this journal, you can set up Reason Code for different “Manufacturing” vendor.

I will look into the revaulation journal. I was considering the Item Charge, as suggested by my NSC, because I was looking for something we could enter using the Order/Invoice processes in Navision. Ultimately I am looking for the best and simplest way (outside of BOM journals) to have multiple vendors each add a cost amount to an item for our remote office, and the documentation I have found in the manual and granule explanations tends to be vague in how the features are actually used in the real world.

I would think that Item Charges would work. I would see the steps as follows: 1) Create a Purchase Order for the Original Vendor (Vendor 1). Cost is 100. 2) Create a Purchase Invoice for the Manufacturing Vendor (Vendor 2). Post this as an Item Charge against the Original P.O. Charge is 10. Now: a) Original Vendor has a VLE for 100 b) Manufacturing Vendor has a VLE for 10 c) Item Cost (Value) is 110 This sounds like what you are looking for.

Yes, that is what we are looking at doing. I just wanted to make sure it was possible before spending money on the granule to test it. Thank you Chris.

The Navision Product CD comes with a Cronus License for Demo purposes. You should be able to use this with the Demo Database before you buy the granuale.