This blog is about the possibilities of implementing ERP solution Microsoft Dynamics NAV in the construction industry. We will discuss about question „Is construction industry ready for ERP?
Of course, I will post about standard NAV, as well :)
When we bus some items intended for job form vendors, we can make mistake in posting process. When we buy items, we usually create a Purchase Order with items in line. When post this document we get Posted Purchase Receipt and Posted Purchase Invoice and increased inventory. But, what will happen if we place Job No. in purchase line? If we fill Job No. field, we will not get inventory increase. Our inventory will stay on previous level. In this case, NAV will post increase and decrease of inventory in the same time. Why NAV post on this way?
By standard, we can post item consumption for job on two ways: post directly from vendor invoice or post indirect using own inventory on Job Journal. That means, we will posting item purchase using Job No. only if we do not want increase of inventory. If we have case that our vendor put material directly to job consumption, we will post items directly from invoice on Job, using Job No. code and Job Task code in Purchase Order/Invoice Line.
When we post item to job, besides all standard entries, we will get Job Ledger Entry with item consumption cost vendor invoice. Also, we get Neg. adjustment entry for inventory. When we want to purchase item directly to job, we get purchase entry and consumption entry in the same time. In this case, we cannot get inventory.
As you see in previous picture (Navigate from Posted Purchase Invoice), we got Job Ledger Entry and two Value entries (one for purchase and one for consumption). From Posted Purchase Receipts, we got two Item Ledger Entries (one for purchase and one for consumption).
If we want to post inventory increased, we must post standard Purchase document (without Job No.) and after that, we can post item inventory consumption, using Job Journals or Recurring Job Journals. This is dilemma I often meet.
Picture I used are form NAV2009 Classic Client, but this functionality is the same on all older or later NAV versions.
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