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How is unit cost calculated in NAV 2009 Classic using FIFO?

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Posted on by Dennis Wathen

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We use FIFO costing in NAV 2009 classic and trying to determine where the unit cost comes from.

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Community Member Microsoft Employee on at

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RE: How is unit cost calculated in NAV 2009 Classic using FIFO?

Hi,

I have seen this issue in few of our customers, where you are having qty as zero, however you have value showing in Inventory Valuation report in NAV 2009 R2 version.

This normally happens, when you have purchase (Receipt & Invoice) & returns or Sales (Valuation Dates) in different periods. However, if you run the report till date, you should not see such issue.

You can run Value Entry Table and check the sum of "Cost Amount (Actual)" field for that particular item. Ideally it should be zero, if quantity is zero as on date.

If at all, it is not zero, you need to adjust the value from back end (In Value Entry & G/L Entries). I do not see any other solution at this point in time as MS would not support further in NAV 2009 version.
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Community Member Microsoft Employee on at

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RE: How is unit cost calculated in NAV 2009 Classic using FIFO?

Hi Tom,

Sorry to recall this issue. Will it be issue in Inventory Valuation if Increase and Decrease in different cost if the cost is calculated as an average.

I am having issue with NAV2009R2 and we are using FIFO method & Lots No. There is always value even Qty is 0.

I feel that it is very straight.

Thank you.
TWBlaisdell on at

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Re: How is unit cost calculated in NAV 2009 Classic using FIFO?

Hello Dennis,

Thank you for posting on the Microsoft Dynamcis Communicty Forum.

With FIFO, the system will recalculate the Unit Cost when Adjust Cost Item Entries is run, or automatically, if Automatic Cost Adjustment is set to Always in Inventory Setup (Note if set to something other than Always, Adjust Cost would need to be run periodically and especially before reporting at month end).

The system uses the cost adjustment functionality to push the final cost through by recoording an adjustment value entry to adjust the original cost to the final cost based on the applied entries in the Item Application Entries Table. Once fully adjusted, the system then udpates the Unit Cost as an average of the remaining FIFO layers.

I did see the material linked to the initial request, too, but wanted to provide some additional guidance, as well. Have a great day. Please let us know if you have further questions.

Best Regards,

Tom
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hampton bay 65 on at

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Re: How is unit cost calculated in NAV 2009 Classic using FIFO?

Hi there, these two links may help

www.slideshare.net/.../na2009-enus-inc

content.icicidirect.com/.../mfcapgaincalc.htm

goodluck