WHY update Unit Cost in sales

hi guys,

any idea why would we want to update unit cost in sales (post sales invoice)?

This field contains the unit cost of the item on the line.

If the Costing Method field in the item table is set to Standard, the program will automatically retrieve the cost from the Unit Cost field of the item table.

The unit cost represents the value the items have in the inventory. It does not influence the amounts on the sales lines.

but why navision allow unit costs to be edited in sales line instead of deriving from purchase price unit costs ?

What is your Costing Method ???



I’m assuming you ask this question because your boss asked you to do such a modification? I would suggest that you’ll ask your boss that question. Although I can think of several situations where a customer would like to manually change the cost price used specific to the individual costs of a sales transaction.

Besides the most often seen, if he sells using g/l accounts instead of items then he still want the real “profit” to be calculated and therefor needs to specify the cost. Or if you want to specify a higher cost if they have done some “manual” changes or so and don’t want to use manufacturing or assembly. Or if they just want to be able do a manual “write-down” of items. Neither of these reason aren’t really very good, and normally I would say to a customer that he should not go that direction. But other times, then it actually does make sense. But only your boss/customer knows. So ask him.

When that has been said, if you have gotten such a request and decides to actually do it, then you also may not forget that unless you do this on a very low level, then a change done manually to the sales line will not really be used in the actual post. The adjust cost job will always set the cost to the actual cost of the value entry used to fulfill the sales order. That’s done according to the costing method specified on the item card.


appreciate your comprehensive explanation, meaning that a salesperson whom change the unit costs actually does have the intention for profit calculation only, the actual costs post to g/l will much depends on the setup done on the costing method (eg: fifo, average,standard)?