# Unit cost is not changing in item card .

Hi,

I am working on Nav 4.0 sp3

Inventory setup - > Average calculation type = Item & location & variant

In item card we have 3 fields

1. Average cost

2. Unit cost

3. Last Direct cost

I created a new item A . Costing method = Fifo

Purchase Transaction details :

I st Purchase :

Date :25/01/01

Qty = 1

Rate = 100 Receive & Invoice.

Then Average cost = 100 , Unit cost = 100 , Last direct cost = 100

II nd Purchase :

Date :27/01/01

Qty = 1

Rate = 200 Receive & Invoice.

Then Average cost = 150, Unit cost = 100 , Last direct cost = 200

III rd Purchase :

Date :28/01/01

Qty = 1

Rate = 300 Receive & Invoice.

Then Average cost = 200 , Unit cost = 100 , Last direct cost = 300.in Item card.

Here my doubt is Why my unit cost field is not changing in item card.

If sale the item on 31/01/01 then which cost system will take .

That means is it take the average cost or unit cost of that item ?

Because when I do sale the transactions it is unit cost first ( item cad unit cost value)

When I run the AICE then it is taking the actual cost of that item .

So please let me know what is the use of the unit cost field?

Why my unit cost field is not changing in item card.?

Which cost it will take when I do sale b y using above example.

Hi,

It’ll use 100 as cost, if you do nothing else.

If you do “Adjust Cost - Item Entries” it should adjust the Costprice field in the item card.

As FIFO suggests the cost used will be the Last Direct Cost.

Like Alexander says.

Unit Cost is only changed when running ACIE; and then Average Cost and Unit Cost are the same. Until you make some more postings…

Last Direct Cost is never used as cost on a sale in standard NAV, it only informs about - well, the Last Direct Cost.

In NAV 5 it is changed: Average Cost and Unit Cost have been kind of merged into field Unit Cost. But you still have to run ACIE regularly.

Thanks Experts,

When I check the fields Unit cost , average cost in Item card . the both fields are same that means they have same value.

Then what is the use of the Unit cost field.

Those two fields will not allways have the same value.

Unless - field “Automatic Cost Adjustmest” in Inventory Setup has another value than Never. Or your positive Item Ledger Entries allways are registred at the same value.

Btw - Unit Cost contains a static value; Average Cost is a calculated field on the Item Card-form.

This is what Microsoft tells about the “Unit Cost” field (Version 5.0):

This field contains the cost per unit of this item.

The program fills in the unit cost field according to what you selected in the Costing Method field:

• If you selected Standard as the costing method, the program grays this field and makes it non-editable.

• If you selected a costing method other than Standard, the program uses the following calculation for the unit cost:

Unit Cost = Inventory Value of items on hand (expected cost + invoiced cost) / Quantity on Hand

If you selected the FIFO, LIFO, Specific, or Average costing method, the program updates the field when you run the Adjust Cost-Item Entries batch job.

With the costing methods other than Standard, the program will also update this field during the posting of purchase invoices if one of the following conditions is true:

• The net invoiced quantity of the item changes from negative or zero to positive.

• The unit cost on the item card is zero.

If one of these conditions is true, the program will update the field with the value in the Last Direct Cost field for the item.

If the item uses the costing method Average, you can click the AssistButton in this field to open the Average Cost Calc. Overview window, which shows all the source value entries that the program uses for calculating the average cost, grouped and summarized by average cost period.