item charges

Business Central/NAV User Forum
1

When purchases is accounted, entry passed is purchases account is debited and Direct cost applied account is credited.

Packing and forwarding is an item charge.

When it is booked, packing and forwarding is debited, but direct cost applied is not credited.

it has an impact on P&L.

How can an expense have an impact on P&L and also add to the value of inventory.

When the FG is consumed, will the packing cost be part of the COGS amount,.

kindly clarify.

2

Not being a costing expert, I will say yes. When you add value to an item, like freight charges, a value entry is added and is related to the item ledger entry for that item. When the item is relieved from inventory it looks at all of the value entries that make up its cost. Same thing for write downs / revaluation journals.