Is it somehow possible to post the expected costs / profits to the G/L even before you have received or shipped the items.
I know you can turn on the feature to calculate the expected costs on the moment you receive or ship the items, but we want to know the costs / profits on the moment we have confirmed the order, like WIP.
Hi Joeri
It is to my knowledge not possible to post expected costs / profits to the G/L before you have received or shipped the items using standard Navision. You will have to customize Navision to archive this.
Regards
Claus
Is it then somehow possible to generate a report with this information in it ?
So, a kind of chart of accounts, only with the expected costs / profits of the open orders in it ?
Hi Joeri
It is possible to develop such a report but this is probably not what you are after. I can’t think of an easy way you can get the required information directly out of Navision.
Regards
Claus
Hello Joeri,
Why do you need this information and where will it be used?
[:)]
We have a lot of purchase and sales order in our administration. Some of these orders can’t be shipped immediately, which results in a wrong end result in our balance. The sales orders have been confirmed and these expected profits should be put against the costs.
We also know that it is possible to do this with the job module. But it isn’t an option for us to put all our sales and purchase orders in a project.
So, the actual question would be how to get an accurate result of the balance when not all SO are shipped the same day as the PO’s get received.
[<:o)] Hello Joeri, that is a excellent question. At our company we have the same problem, so let’s hope there will be an outstanding answer soon!
I am not an accountant so I cannot really comment upon some of the issues raised here, but the result is not a wroing end result, it is a true result. The business has indeed purchased for a future sale, but this sale has yet to be processed, so the liability of the stock still sits with the business - essentially unless 100% of sales to purchases are made this is true, unless after buying and receiving the stock you can return it without any associated cost. Obviously there are different needs in different businesses and countries so you could - after everything has been shipped in the day, run a report that takes all of the cost and sales value of the unshipped sales lines and posts it as a daily recurring journal - unless you only want this at month end of course - alternatively I am sure a modification could be written to take these values and put them into the journal for you to post.
Have to agree with Mr. Weaver.
I am not accountant but we support a wide range of businesses in the corporation.
I believe that you are looking for Revenue Recognition: which may be declared in accounts if accepted by your auditors. The name is a little misleading because you must recognise costs (commitments to purchase) as well as revenues (contract to sell) that have not yet been realied.
I am worried that you are chasing these numbers; on a simple commercial operation in non-capital goods this should not be a significant value. With capital items (one of our businesses) this can be in the region of a million GBP then I could understand the concern.
FYI. Historically we applied a percentage of expected revenues to the calcualtion. Could you apply the same?
Otherwise a report that looks into the Sales Line table and pivots on the Business and Product Posting Groups will hopefully find the data that you need…
[:D]
" believe that you are looking for Revenue Recognition: which may be declared in accounts if accepted by your auditors. The name is a little misleading because you must recognise costs (commitments to purchase) as well as revenues (contract to sell) that have not yet been realied. "
Jonathan, you are THE MAN! This is exactly what we are looking for, and though I worked at an accountantsfirm for several years, this term never would have entered my mind. You are right btw by saying that you also must recognize costs as well as revenues.
But thanks a million, now we’ve got something to continue our quest for revenue recognition.
Indeed, that was what I was looking for. We are also working with capital items like you thought.
How did you calculate this percentage ? I was thinking about the sales line option. You can get the expected costs & profits from the sales lines. The only trouble with this is when the goods are received. When the goods get posted to the inventory but aren’t shipped yet, you’ll get the costs twice. Once from the sales line and once from the PO.
But I understand from your post that there isn’t any ‘out-of-the-box’ way to make this work ?
You are too generous.
How did we calcualte the percentage - with years of experience and a crystal ball and complicity from the auditors. Not a good route to follow as there is just too much interpretation of data and it is very difficult to reconcile for audit.
I would think no software does this out of the box as the calcualtion will be customer specific and liable to audit interpretation.
I think reporting off the Purchase Line and Sales Line tables, using the Posting Groups will deliver the information. Depending on your Setup then only one Revenue and one COGS account per grouping. Taking only the outstanding quantity * unit price will show the undelivered purchases and sales. And then you could project into the future using Planned Delivery dates or similar.
The result will always be variable - shifting up and down day by day just like a…
Do you chaps have a competent solution centre or reliable developer?
Good luck.
[<:o)]
Thanks a lot, we’ll try to get our desired result with your information. I think we can manage it now.