Skip to main content

Notifications

Announcements

No record found.

News and Announcements icon
Dynamics 365 Community / Forums / Microsoft Dynamics NAV (Archived) / Cost of Materials comp...
Microsoft Dynamics NAV (Archived)

Cost of Materials component of COGS unusually high

(0) ShareShare
ReportReport
Posted on by Community Member Microsoft Employee

Hi All,

I'm new to NAV and hope someone can help with some info...

We have an issue in our business where the cost of materials is unusually high in comparison with cost of sales. There have been some material cost increases that we have factored in however this does not account for the increase we have seen in recent months. 

Product Items are manufactured in house and costs are accumulated through production orders. We experienced a jump around the start of a new financial year and there has been a jump in all months following.  Nothing in particular has changed in the business. 

Just wondering if anyone can provide assistance in possible causes for a jump in cost of goods manufactured and how to check for anomalies.

thanks

Steve

*This post is locked for comments

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: Cost of Materials component of COGS unusually high

    Thanks for the prompt response Vishal, we will investigate further based on your suggestions

  • Suggested answer
    Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: Cost of Materials component of COGS unusually high

    Hi,

    There could be multiple reasons to this.

    1) Unit of Measure Conversion is not defined properly for Materials

    2) Bill of Material is not defined properly for Product Items (Wrong Conversions, Qty etc.)

    3) Production Order status not changed to Finished

    4) "Adjust Cost Item Entries Job" is not run on periodic basis

    5) Purchase Cost or UOM might be wrong in few of the material while receiving the goods

    Check any of the Production Order > Navigate > and see the Item Ledger Entry ("Cost Amount (Actual)") and try to drill down the reasons further...

    Hope this helps.

Under review

Thank you for your reply! To ensure a great experience for everyone, your content is awaiting approval by our Community Managers. Please check back later.

Helpful resources

Quick Links

December Spotlight Star - Muhammad Affan

Congratulations to a top community star!

Top 10 leaders for November!

Congratulations to our November super stars!

Tips for Writing Effective Suggested Answers

Best practices for providing successful forum answers ✍️

Leaderboard

#1
André Arnaud de Calavon Profile Picture

André Arnaud de Cal... 291,269 Super User 2024 Season 2

#2
Martin Dráb Profile Picture

Martin Dráb 230,198 Most Valuable Professional

#3
nmaenpaa Profile Picture

nmaenpaa 101,156

Leaderboard

Featured topics

Product updates

Dynamics 365 release plans