Unit cost wrong

Hi guys! I have a question. I have an item X that is track by FIFO method. The unit cost should be 6.45$ but after many transactions, I found that the unit cost = 31.35$ now and the avearge cost= 36.51$. How can cause that problem??? I really dont understand that because when I go on the value entries of that item, in the field " Cost per unit" dont show annthing strange. it varies between 6.76$ and 8.53$. This is bad as my costing is wrong now. Any clue??? Thanks!

Firstly if you are using FIFO, then you can completely ignoe the Unit OCst field, it has no effect on your inventory cost. Although the average cost is updated and “should” be correct, but average cost is only related to invoicing whereas FIFO costing is a function of shipping. To check if your FIFO cost is correct, then look at the Item Ledger entries at the Cost Posted to G/L, and check it there. Just ignore the irrelevant fields.

Hi Tatiana, Which version of Navision are you using ? Regards, Srini

Although Average cost, Standard cost and Specific cost have changed a lot through the versions, in reality FIFO has not changed since the DOS version.

I know what you are saying we are using 3.1A and the costs have been a problem since day 1. It has made our UBP useless. The problem does correct itself once the item has been invoiced. The run the adjust-cost item entries & post. Problem we have is that sometimes the invoice doesn’t come to about 3 weeks after we have received the merch. For some reason, which i keep being told that they are working on the fix, sometimes when you receive an item the cost “in lack of a better term” freaks-out. We then have to live with the bad costs for the 3 weeks. There was a discussion in a topic called “3.70” that mentioned a fix in 3.7a for the bad costing issue.

I’ am using 3.6A. And yes David, I looked at the field " Cost posted to G/L" and there is nothing strange there. So any clue?? What can be the cause of that problem?? Thanks Rosine

The COst Posted to G/L IS your cost, is that number correct? Please ignore all cost fields on the item card if using FIFO.

Hi Tatiana I suggest you start by looking at the purchase transactions of the item ledger entries and look at the cost amount actual. If there are not many can you list them - just for curiosity [:D], of course with the invoiced quantity.

Sounds like a problem we had… Our average costs got out of whack… Check that the received inventory qty and the invoiced or credited (A/P) qty’s have the same unit of measure… Robert