I currently am on NAV 5.0. I have a process that I am handling now by doing all sorts of crazy revaluing, etc. However, I wonder if anyone has some suggestions to a better way.
Customer places and order for product that they supply us all the Raw Materials on, and we basically just MFG the product. We then INVOICE the customer for the product giving them the lot #'s etc. I then have to positively adjust the product back into inventory with the lot’s (for tracing purposes) at 0 cost, to then ship the product to their customers at a 0 price…The intial order may be for 3000 cases, and then we ship various amounts of the Finished Good to multiples of their customers.
I am thinking this is development… but just wondering if there is anything other fine NAV professionals may suggest???
So you do not manufacture the item using NAV manufacturing elements?
You could consume the items at standard cost of zero, cost the labour (if you want), then invoice out at the sales price giving you an accurate margin. Why are you shipping at zero price? When and how do you charge your customer?
Create Item for each Customer raw material with standard Cost 0 and receive it at 0 Price from customer - so you can track there inventory.
Create Finished Good that you will produce and process MFG order with actual/standard labor + 0 cost raw materials - finished good will have your actual cost.
Create Customer Owned Finished Good (new item numner) with standard cost 0.
When you sell to customer Your Finished Good - Insert negative Line with Customer Owned Finished Good and 0 price (the maximum modification needed - insert negative line on Release of sales order - 15 min.)
Yes, they send us the raw materials, but with NO invoice. They come in at 0 cost FIFO (was set up that way before me coming on board). These Raw materials then get consumed in a Production Order to make a zero raw material cost with Labor FG product. As soon as this product is all manufactured, we invoice the customer for the product. Margin is our labor minus the sell price, since all the raw materials they provided. We invoice them for the product, but then right now we are positively adjusting the product back into inventory, because, we then get “shipping orders” from the customer who we make these products for, and we use NAV to handle the warehousing as well, so we have the product to ship out on their sales orders, buy just using ship to addresses. We do this because we have to keep LOT Traceability consistency, so the lots we invoiced the customer for, we reuse the numbers and positively adjust them back in to allow to ship to these orders… Then if there is any cost craziness that happens at Month End, we revaule the entries to the propper amount.
I know there must be an easier way. I do thinki that Valentins response below may be something to explore? I’m just not sure.
Forgive me if this is unclear, it’s a crazy process that I’m trying to wrap my head around…
HAHAHA… David… I definitely don’t want to complicate things!!! I dont think I explained it fully so you understood the business process I’m trying to accomodate… I replied to Sara, maybe you see more of the details now I’m trying to handle… thx
Your first sentence on the Raw Materials, I understand.
Second Sentence on the Finished Good, I get that also.
Then I am not exactly sure? I see having 2 Finished Good items in the system here? one for the customer owned FG, that we invoice as soon as we finish their run, but those are all lot tracked, and we invoice them, we then need to somehow need to get that product back into the system so we can still “manage their FG inventory”, which they then issue “shipment orders”, and we ship the products to different ship to locations.
If you read my response to Anna, you may see some additional details that I might have left out the first time.
Mhmm… you invoice the finished products to your customer so you get paid for them, but you don’t ship any item until you get shipping orders…
How later do you get shipping orders? I guess to notify your customer that the items are ready with a simple output list and wait for the shipping orders would not be a suitable option?
What I was thinking was to insert your customer’s customers in your customer table, each with your customer as “Billing to - Customer” so that you can ship the final receivers and invoice the actual customer, but this would be a suitable solution only if you got the shipping orders along with the customer order…
Yah… the shipping orders come at various times, they are in different qty’s etc. Of course, they end up netting what the initial prod run/sales order was for. Notifying them with a simple list, would be ideal, but we do actually have to Invoice them for the products, hence the billing of the original output item, what I’m doing now…
Yes, the invoice needs to reflect the output, and all the various lot numbers that are produced for that run, yes, could invoice to a G/L, but I lose all my lot tracking info, i know I could modifiy, and or print lot info documents and send with the invoice, etc,
If on the invoice you need to invoice the lot traceable items then you need to ship them. If you then need to ship and invoice them when you physically ship them then you need to bring them back in with the same lot number. This is the overhead burden you have brought on yourself by providing the customer with the output they want, if you want to change this, then do not invoice the lots at the outset, do what Anna says. Your issue is you are moving traceable items without moving them and then need to reflect the movement when you physically move them - so either you put up with this as a necessity or you change the initial invoice. I would start by telling the customer what you will do, or adding a processing charge to the storage charge you already hopefully charge them for consignment management. [:D]
What I was suggesting is a bit different… and trickier. [:)]
Create the invoice in the sales invoice form using the original item codes and get the appropriate lot numbers the way you usually do.
Create a function which changes the field Type into “G/L Account” and “No.” into the Sales Account, without validate the new No and saving the original Item No in a customized field (this will alow you to reverse the change if needed and save the ability to rescue more data related to the item).
The abovesaid function should retrieve the tracking lines attached to each invoice line and import them either in a customized table or in the invoice itself as text lines. The latter would be simpler to implement, provided you take care to make the added lines recognizable, so that if you need to reverse the change, they can be easily deleted.
I’ve done something similar for a goldsmith plant that needed to charge and report in the invoice some components (such as gold, stones, etc…) that already had been subtracted from inventory by consumption. It seems to work nicely. [:)]
You need 2 Finished Goods Items… One for the Finished Good You Produce (this one will have cost) another for costoner owned finished good that you will keep on inventory after you sold it. Lets name them XXXX and XXXX-CO (CO for Customer Owned).
When you sell 1000 of XXXX with Lot ZZZZ create additional Line on invoice -1000 of XXXX-CO with lot ZZZZ with 0 price. (Maybe you want hide this lines on invoice printout)
During posting of this invoice you will ship XXXX and receive XXXX-CO with lot ZZZZ. If you want you can change Lot Tracing form to include such transactions… You LOT will be the same so it is very easy to Trace…
When Customer askes you ship something you will ship XXXX-CO with LOT ZZZZ.