Until today i have not seen any comments on why Navision is handling Unit Cost of an Item wrong.Anybody noticed this before, I would like to open this subject or learn the solution, which I have not seen yet. Navision Version is 2.60C (But it is still the same also in W13.10A) My Case is; I have Item X with FIFO Calculation I am purchasing Item X with Cost Y and in Quantity Z; then I am purchasing once more the Item X with Cost 2Y and in Quantity Z/2 Till here everything seems to be in order in the Item Ledger; Then I Credit the SECOND purchase with Copy Function and also with Correction mark. After I post Credit Memo I am expecting to see in the ledger entry the following; Item------------Cost--------Quantity----------Remaining X--------------Y-------------Z----------------Z X-------------2Y-------------Z/2----------------0 But instead I see; Item------------Cost--------Quantity----------Remaining X--------------Y-------------Z----------------Z-(Z/2) X-------------2Y-------------Z/2----------------Z/2 which leads with the following sales a wrong cost Edited by - barcom on 2002 Apr 24 10:09:25
I’m not sure I see a problem with this. You are indeed using FIFO, and that means that any transactions to the Ledger will grab the go to the first transaction first. If you run a credit memo out to credit the second Posted Invoice, FIFO still wants to grab the first quantity. I would have to assess the data in your example as correct. If you were working in Attain, you would post to reduce the inventory in the Ledger and want to bring the appropriate costs with the reduction, you need to use Fixed Applications to apply against the correct Ledger Entries. I’m not sure how this would be handled in v2.60. Regards! Kristopher Webb Kelar Corporation, Canada
You are correct, your costs will be incorrect under this example. Looking at the Purchase Credit Memo, there are 2 fields on the header: Applies-to Doc. Type and Applies-to Doc. No. These are outmatically filled in when you do a copy document into a credit memo. These are used to point the Vendor Ledger Entry which to reverse. They will do nothing for the Item Ledger Application. The field which you are looking for is on the Lines and called Appl.-to Item Entry (It is hidden by default). This field should contain the Item Ledger Entry No. for the Entry which you want to reverse. This field is not automatically filled in, but it could be with a little custom. In you example, if you fill in this field, your applications are done correctly. Chris.
Hello, I am sorry Chris, but Kristopher is right. FIFO on the item IS FIFO! With ‘apply to doc. no.’ you apply to the vendor / customer ledger entry. Navision is doing the FIFO on the item ledger (so first entry with remaining qty.) BTW, Kristopher. Navision is handling this since at least 3.02 Dos based version. Regards Walter
In theory this is what it should be when FIFO chosen. And also in practice this cancelled invoice also closed in Accounting side.But in the Item Ledger it still carries a remaining which is available for selling.This confuses me! Regards Baris COMLEKCI Developer Lizard Business Solutions AG Edited by - barcom on 2002 Apr 24 10:10:37
HI Guys, In Attain there is a feature called “Exact Cost Reversing” in the sales and purchase setup. Using this feature you can actually reverse the exact cost that was incurred when you made the purchase. But you have to select the applies to Item entry on the credit memo line to have this reverse on the original purchase cost. Thnx, Best regards, Prashanth NCFC, NCMC, NCSD pbg@navilogic.com
The question becomes, on the Credit Memo, did we return the exact product that was shipped in on the invoice? If this was the case (in my understanding it is), then FIFO does not apply. My point was more that if we choose, we can apply the Credit to an exact Item Ledger using the field on the Lines.
Yes, we are cancelling the invoice One-to-one so, FIFO should not apply here, but it applies. Baris COMLEKCI Developer Lizard Business Solutions AG
quote:
Originally posted by chrisk: The question becomes, on the Credit Memo, did we return the exact product that was shipped in on the invoice? If this was the case (in my understanding it is), then FIFO does not apply. My point was more that if we choose, we can apply the Credit to an exact Item Ledger using the field on the Lines.
My guess is that there have been routines written into Attain that make a “work around” for these types of FIFO problems. I realize that in an accounting sense, we’re reversing the second Purchase Invoice because it was incorrect, not requested, or whatever. But in the programming sense, the posting routines in v2.60 do not know how to do this because you have FIFO and the posting routines just go against the first Item Ledger Entry. I’ve done some poking around in the v2.60 and can’t see anything that suggests that the Exact Cost Reversing that exists in Attain existed in v2.60. Therefore, we’re left with two options, in my humble opinion. #1. We can perform some sort of ledger entry (and I’m sure an Implementor there would have to take a serious look into this to see how the entries will work off one another, and even then I’m not sure if it would work.). #2. Create a customization in the v2.60 product that reproduces the functionality of the posting routines that Attain uses. Not a simple task either, and of course you’d have to evaluate this option carefully, but I believe it could be done. (BTW, I wouldn’t try to merge the Attain objects into v2.60 for the obvious reasons of DIMENSIONS! Great for Accountants, the bain of Developer’s existances!!) Regards! Kristopher Webb Kelar Corporation, Canada