Hi all , I have some interrogations about how Navision handle specific cost :
Facts: All items have « Specific » as costing method and used serial Nos. Using Nav 3.7
I bought an item on December 7th for 8000 USD from a company ( our sister company). On January 10th the item came back at our company for 7156 USD = 7002 CAD. Nav posts the sales very well and the COGS with same amounts.
However, I found that the transaction was an error (I am not supposed to sell for loss) , I ask to cancel the sales invoice with a credit note.
Then on January 27th, a credit note is created in Navision. Because the exchange rate changed since then, the sales has been cancelled to 7156 USD = 7492 CAD which Navision does well. The cost is however cancelled to 7311 CAD instead of 8500 CAD. WHY??
After running cost routines (adjust item entries and post inv to gl), Nav calculates at the right cost at the end of the day.
However, the problem occurs when I want to credit the invoice even after 2 -3 weeks why the cost is still the same not 8500 CAD. Navision since then should know that. I do not have exact cost reversing checked on the setup in case of a cancellation but do I need that checked?? If yes why as I am using specific costing method.
Without these you will never have correct COGS (only if Cost is always the same, which is VERY rare)
No it doesn’t [;)], costing data from Item card is used to speed up Invoice entry (actually, posting of it). This has been discussed here many times, do some search and you will get detailed explanations
But you didnt give me the answer. Why when using specific cost for an item , the actual cost is different??? as the costing method is “specific” , i expect to see the real cost of that item when I sell it, no???
…continued Seems Editing doesn’t work or I did something wrong [:^)]
By selecting one of them you only tell the Adjustment routines which algorithm to use when tidying things up… Nevertheless, there are some settings in versions 4-up which allows immediate updating of costing info, but:
it wil slow up posting processes
and it wouldn’t give you correct COGS always, you still need to run the Adjustment routines, as not enough data is available in some situations (for example, sale before purchase etc)
Costing processes are complicated, event order changes from Item to Item and day to day, their combinations slice and dice, so NAV has this approach as I tried to explain - so allowing you to enter your transactions in any order, add anytime some additional charges (line type Charge(Item)) not asking to follow determined workflow, BUT after running Adjustment your COGS will (well, should be [;)]) correct.
It is adviced here for many times already to run Adjustment routines frequently to have most precise data available, and, if done daily it doesn’t take much time - in opposition, it can run forever if done, say, monthly on inventory having 100-200 thousand Items and heavy movement.
Thanks Modrics for all your answers. But I di run costs routines after selling goods, crediting the customers ( using Sles return order) so it is not costing routines nut running here ( I think) as I ran them. But it’s really when I create a sales return other that I have that problem.
There were some problems (issues as MS prefers to call them) with Sales Return to get exactly the same cost returned with Specific costing - but I recall there was a solution or HF, already discussed here - try search the forum, I really can’t remember everything [;)] just on the spot…
Sorry I am not clear - where do you think the sales cost is incorrect? On the sales return? This is only correct on the ILE after posting of the invoice, it will be the unit cost at this stage. Could you just write down a simple step, so for example:
Sales Order = 10.00
Sales Invoice = 10.00
ILE after Adjust Cost = 11.50
Return Order = 10.00
Return Credit Memo = 10.00
ILE after Adjust Cost = 11.50
It is not clear to me if it is going wrong or if it is your understanding of what it is doing that needs assistance.