Prev: NAV SDK - 64bit - ComCom
Next: Virtual tables secondary keys
From: kdv on 8 Dec 2009 22:08
please check location on both PO first. FIFO costing is by location.

"Alexey" wrote:

> Hi!
>
> Situation:
> We have purchased 10 units of item X (cost 1$ per unit) at September 5th.
> After it we have saled 3 units (cost 3$).
>
> When previouse 2 transactions are posted, then we have registered new
> purchase order with cost 0.90$ per unit at September 1st. Run Cost Adjustment
> and see that saled item cost is 3$, not 2.70$.
>
> Question:
> what to do FIFO work correctly?
>
> Thanks.
>
From: Helene on 4 Jan 2010 06:09
Hi,

NAV is a real time system and is based upon a basic accounting principle
that every business event is to be recorded as soon as possible after its
occurrence.

When posting a shipment there is an immediate application made to a
supplying item ledger entry in accordance with the chosen costing method.
When posting the shipment the system finds an Open item ledger entry
carrying a positive remaining quantity in the same Location. In the scenario
the only available quantity is the Purchase from Sept 5th. The application
made, on one hand supports future questions such as what quantity is
available and where but also tracks which inbound entry supplied which
outbound entry and thereby the Cost of Goods Sold of the outbound entry can
be established.

If a second Shipment is posted after the second receipt (Purchase with
Direct Unit cost of 0,90) the receipt of September 1st will be identified as
the oldest one with remaining quantity to supply the second shipment.

To record the business events as soon as possible after their occurrence and
avoid or prevent back dating will provide a FIFO application in accordance
with your expectation.

Sometimes however, one has to record a business event with an older date. To
support such exceptional or corrective scenario there is an Application
worksheet available from version 5.0. In the application worksheet you can
remove existing application and apply the outbound entry to another entry. In
this scenario you could remove the application between the shipment and the
Purchase of September 5th and thereafter close the application worksheet.
Thereby, the Open entries will be applied in accordance with the Item costing
method.




"Alexey" wrote:

> Hi!
>
> Situation:
> We have purchased 10 units of item X (cost 1$ per unit) at September 5th.
> After it we have saled 3 units (cost 3$).
>
> When previouse 2 transactions are posted, then we have registered new
> purchase order with cost 0.90$ per unit at September 1st. Run Cost Adjustment
> and see that saled item cost is 3$, not 2.70$.
>
> Question:
> what to do FIFO work correctly?
>
> Thanks.
>
 | 
Pages: 1
Prev: NAV SDK - 64bit - ComCom
Next: Virtual tables secondary keys