Unit Amount

Business Central/NAV User Forum
1

Hi,

How does the ‘Unit Amount’ is calculated in an item journal line?

What is the difference between unit cost and unit amount?

Thank you in advance.

2

Hi RS123,

Welcome in the Dynamics User Group!

The F1 help actually explains very good what “Unit Amount” is:

Unit Amount Field
The Item Journal Line Table
This field shows the price of one unit of the item on the journal line.

Depending on what has been selected in the Entry Type field, this field shows either a unit cost or a unit price. When the Item No. field is filled in, the program automatically retrieves the price from one of the following fields on the item card:

Purchase:
The field shows the last direct cost for one unit of the item on the journal line.

Sales:
The field shows the unit price for one unit of the item on the journal line.

Positive Adjmt.:
The field shows the unit cost for one unit of the item on the journal line.

Negative Adjmt.:
The field shows the unit cost for one unit of the item on the journal line.

Consumption:
The field shows the unit cost for one unit of the item on the journal line.

So you can see that in most cases, then it’s the same as Unit Cost, except when entry type is sales or purchases.

3

Be ware that there is an error i NAV 4 and 5: if you make a Positive Adjustment and use “Indirect Cost %” you will get a wrong Unit Cost. Microsoft has made a hotfix for this; search Partnersource fo KB-article 922927.

This error has been very time-consuming for me. And those of my hairs that didn’t turn grey just fell off [8o|]

4

Hi anfinnur,

Thanks for ponting out the error which is very helpful!!! [:)]

That is what confused me too…I dont understand why there are 2 concepts called ‘Unit Amount’ and ‘Unit Cost’. Would appreciate if someone can simply explain the purpose of having 2 different concepts and the meaning in simple terms.

It is diffficult to explain the client the purpose of having 2 different concepts…[*-)]

Even if the entry type is ‘Purchase’ we dont get the Unit Amount as the Last Direct Cost (as mentioned in Help) And for ‘Sales’ its not the selling price [8-)]

Anyway will read about the error for more details…

Thanks everybody for the help.

5

When you purchase items from a vendor, you receive a bill: 100 money. But additionally you have to pay for - transport, insurance, customs, bribe or whatever. Ypu calculate (manually that expenses like this will add say 8% to the purch-value. So - the value of your item is purch-price (Unit Amount) + expenses (Indirect Cost %) = value (Unit Cost).