Taking care of changes in Unit Price after Purchase Invoice is posted

Business Central/NAV Developers Forum
1

I’m working on NAV 2013 R2 customization for jewellery domain. Gold Rates are driven by so many external factors and the rates vary every day.

Assume that the company is purchasing 100 grams of item No. Item1 today at a Unit Price of 2500/- and assume that the invoice is posted. The payment terms for this purchase being 30 days.

The transaction is as follows:


Item No.
Quantity
Unit of Measure Code
Direct Unit Cost Excl. VAT
Line Amount Excl. VAT

Gold Ring 1
100
Gram
2500
250000

Few of the vendors have given the option of “Price Fixing”, meaning, within 30 days I can fix the gold rate (favorable to me) which is prevailing on the day of rate fix. The gold price may go up or down.

Now assume that the Gold Rate (that is Unit Price) has fallen by Rs. 50/- on the day of “Price Fixing”. Now the new price being 2450/- as shown below:


Item No.
Quantity
Unit of Measure Code
Direct Unit Cost Excl. VAT
Line Amount Excl. VAT

Gold Ring 1
100
Gram
2450
245000

As per the new price, I am supposed to make a payment 245000/- (excluding VAT) to the vendor. But I’ve already posted 250000/- in the invoice. At present I’m posting manual entries to adjust this price change. I’m afraid that this would affect inventory valuation and costing as well (my costing method: “Average”)

I would like to know if there are better ways to achieve this. If I’ve to do customization, kindly guide me how to do the customization.

Thanks for your answer and support,

-Nageshwara

2

Hi Nageshwar,

You can do this by using Item Charge. If the price goes up It is easy to use Item Charge,

but if price fallen, you’ll have to post a minus amount for the item charge. this wont allow in default NAV, you’ll have to check the process and do the customization.

3

Dear Sriyantha Roshan,

Thanks for your answer. I’m planning to customize NAV like this:

When new “Unit Price” is entered by selecting the posted purchase invoice the system calculates whether to post positive adjustment entries or negative adjustment entries. Then it will fetch the posted G/L account numbers from the posted purchase invoice and it generate journal lines for respective adjustment. These purchase journal lines are then copied to purchase journal where -in the user can review and then post them.

Kindly let me know if my idea is correct.