Microsoft Dynamics NAV 5.0
Inventory Costing
Technical White Paper
This paper is intended for people who are involved in the implementation of costing functionality at a customer site and for those who need to advise customers or make modifications within the area. It gives an overview of the principles used within the costing area of Navision / Microsoft Dynamics NAV 5.0. Severalin-depth examples are provided.
Table of Contents
Introduction
Inventory Posting
Inventory Periods
Inventory Adjustment and Reconciliation with General Ledger
Cost Adjustment
Expected Cost Posting
Reconciling Inventory with the General Ledger
Account Types
Cost Components
Costing Method
The Effect of Costing Method on Valuing Inventory Increases
The Effect of Costing Method When Assigning Value to Inventory Decreases
Average Cost Calculation
Setting up for Average Cost
Calculating Average Cost
Setting the Valuation Date
Adjusting the Average Cost
Item Applications
Fixed Application
Transfer Application
Re-Application of Item Entries
Calculating Revaluable Quantity
Including Expected Cost Entries in a Revaluation
Determining Whether an Inventory Decrease Is Affected by a Revaluation
Variance Calculation
Determining Standard Cost
Rounding
Glossary
Appendix 1 – Controlling Accounts Posted to in General Ledger
Calculating the Amount to Post to General Ledger
Appendix 2 – Variance Calculation for Manufactured Items
Appendix 3 – Capacity Ledger Entry Diagram