Microsoft Dynamics NAV (Archived)

Average Costing Method

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Posted on by Rajat walia

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Dear Experts,

At the time of doing testing i found out that Nav is Averaging the cost for closed entries also.

For Example: Purchased 10 quantity 100 each.

Again Purchased 10 quantity 200 Each.

Then Sold all 20 quantity whose cost is 150 Each according to Average Costing Method.

Now Again i purchased 10 items with 600 Each

After one more Purchase i saw that system also update the cost for sold quantity as 300 Each.

Also Updated for last Purchased Transaction as 300 Each

(According to my understanding system must average the cost for open Entries only)

Will Wait for your Suggestion.

Thanks in Advance.

Rajat

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azelaya59 2,807 on at

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Which costing type are you using? What you are describing is "Average".

Bear in mind that the "Unit Cost" on the Item Card is always displayed as an average. To see the layers (FIFO, LIFO) you have click on the ellipses to the right

of the numeral.

If you play with FIFO or LIFO, you will see the costing of the consumption. I think this is what you want.

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azelaya59 2,807 on at

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Secondly, if you choose to change the Costing Method on any items, you need to make sure all of the inventory has been shipped, consumed or deleted. Nav will not let change the method unless there's zero on hand in all locations.

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Teddy Herryanto (Th... 14,284 Super User 2025 Season 2 on at

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Did you run Adjust Cost - Item Entries ?

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Rajat walia 390 on at

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Dear Alfredo,

Thank You very much for Your Response.

we are using Average Costing Method and my doubt is why system is updating the Average cost for closed entries also? according to me it must average for open entries only.

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Rajat walia 390 on at

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Dear Teddy,

In my case Automatic cost posting is enable in Inventory setup page.

Also Attached the screenshot.

Thanks

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Teddy Herryanto (Th... 14,284 Super User 2025 Season 2 on at

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It is not for open entries only. There are several cases (posting date, correction, etc) when NAV will decide if the cost needs to be re-evaluated.

Did you post everything on the same posting date ?

Your average cost period is setup on Day.

NAV will calculate the average cost for that day, then it applies the average cost for that day to all inventory decreases on the same day.

If you post another inventory increases in the same day, NAV will re-evaluate the new average cost to all the entries on the same day.

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