I have a question with Nav 3.60 Mfr. When exactly does the WIP get credited and the Fin. Goods Inventory get debited in case where there’s Backward Flushing? Wouldn’t Posting Inventory Cost to G/L periodic activity do this? I have done the Adjust Cost-Item Entries and Post Inventory Cost to G/L but it does not credit WIP account and debit the Fin. Goods Inventory account. Can anyone please answer this? Thanks in advance
Hi I am assuming you have set the Inventory Posting Group to capture WIP and the other associated breakdown of production costs. Cost posting follows the Navision norm with regards to the Adjust Cost-Item Entries batch job and the Post Inventory Cost to G/L (i.e. if automatic cost posting is switched off it happens when these are run). WIP is affected by four types of transactions; 1. Output journals - representing hte direct and indirect costs of capacity used. 2. Consumption journals - representing the sum of direct and overhead costs of components used in produciton 3. Receipts from subcontractor - representing the direct and overhead costs of outsourcing 4. Finishing Production orders - representing the cost of production removed from WIP. If you are backward consuming the components and no routing link codes are in use I believe all of the components will be credtited and debited to WIP at completion of the order (assuming automatic posting is on). At the same time the components will be consumed from the inventory accounts and Finished goods will be debited. So you will see no WIP - but the inventory of the components will be held on stock until completion. I suggest you run one all the way through - you should see the in and out WIP entries (eventually[:D]). I hope this helps
Hi Steven, Small change if there is Expected Cost posting setup in the Inventory Setup, the WIP is credited the same time the Output Journal is Posted with an Output Quantity. And if Not, even when you Finish the production Order, it will not credit, unless you run the adjust cost Item entries Batch Job. Funny the way it is…[}:)]
Hi Prashanth Interesting - I never knew that but have done very little with expected costing in 3.60 - you live and learn! [:D]