We have 2 business and keep inventory in both and often to transfer between them. I would like to keep inventory in one company and transfer inventory once a week after all orders are shipped. The purchase order would bring inventory from negative quantity to 0.
My question is: When I sell an items with 0 qty on hand, what will the Cost of good inventory be? We use FIFO. I would imagine it's $0.00 or the last cost or the standard cost?
Thank you for your help
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In case of negative Inventory -
1. At the time of Sale, the system will post the value entry with expected cost taken from Item Page
2. At the time of Inward movement of inventory on a later stage which could be Purchase / Transfer / Sales Return, the system will apply the Inward Entry with the Sales Entry posted in step 1
3. When you run the Adjust Cost Item Entry batch, the system will adjust the value entries for Sales with the Actual amount as per the Inward Entry and will correct your COGS
Hi,
The Unit Costs are always taken from the Item Page, field "Unit Costs".
For FIFO, the cost of the oldest Item Ledger Entry with a Remaining Quantity will be used.
I've never worked with negative Inventory, but understand your approach. The financial transaction on COGS should be the same as if you would have a positive inventory. In NAV, the physical Inventory and financial value is logically seperated (but linked in the database).
Using your approach of negative inventory, keep in mind that you never have the correct inventory of the second business in NAV. This might cause problems in future for you (for example when using the Inventory Valuation Report).
sorry, To clarify, I am looking for the cost of good SOLD.
Thank you again
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