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Unit Cost field on Item Card

Posted on by 604

I know that the Unit Cost field on the item card is calculating the average cost that the program will use to populate the Unit Cost (LCY) fields on sales lines and item journal lines.

My issue on this field is that - I have an item which the inventory has no inventory (though there are posted item ledger entries) and all costs associated to the ILE are 0 except for a purchase transaction in 31/03/14 that had Direct Cost applied of $500 but applied/shipped via SO1234.  Under this case, the cost of sales of SO1234 once posted (using the same date of 31/03/14) will be using $500.

Why in the world NAV still computes the average cost of my item as $500 on the item card where in fact there are no inventory involved!  I also tried to put temporary item jrnl. of qty=1 and unit cost =0 to make sure that the Last Direct Unit Cost is also changed to 0.  Then post a negative jnl to reverse my item journal.  Still, NAV shows the bloody $500 on the item card.  Not to mention, ACIE was run several times!

Can anyone please explain why is this occurring or how to set the unit cost to 0?

NAV Version used = NAV 2013 R2 build no. 7.1.35473.0

  • Faisal_Bukhari Profile Picture
    Faisal_Bukhari 45 on at
    RE: Unit Cost field on Item Card

    Post 1 positive Quantity with same average cost which is on Item card(not 0)-->Run adjust cost-Item entries

    Post 1 Negative quantity with same average cost which is on Item card ---> Run adjust cost-Item entries

    Hope it solves ur problem


    Faiz Bukhari

  • ArnoldS Profile Picture
    ArnoldS 604 on at
    RE: Unit Cost field on Item Card

    Thank Alex.  I have already tried your solution even before I posted my issue.  The result is the same - the Unit Cost field is still 562.50 instead of 0. :(

  • Verified answer
    Alex Chow Profile Picture
    Alex Chow 4,481 on at
    RE: Unit Cost field on Item Card

    The Unit Cost field will not be updated if the quantity on hand is 0. The reason is because it's good practice to post estimated cost on the item when the item is sold even when you don't have inventory.

    If you want the unit cost to be 0, do the following:

    1. Positive adjust an item with quantity of 1 with 0 cost.

    2. Run ACIE

    3. Negative adjust the item back out

    Check your Unit Cost.

  • Verified answer
    Aleksandar Totovic Profile Picture
    Aleksandar Totovic 16,765 on at
    RE: Unit Cost field on Item Card

    With the average costing method, NAV will also update this field during the posting of purchase invoices  if one of the following conditions is true:

    -The net invoiced quantity of the item changes from negative or zero to positive.

    -The unit cost on the item card is zero.

    If one of these conditions is true, the program will update the field with the value in the Last Direct Cost field for the item.

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