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135Hello,
I was wondering if someone might be able to help me regarding a desire we have to better account for our costs of warranty.
Our current situation is we have a provision for warranty costs on our balance sheet which is calculated as a percentage of our sales figures for the previous 12 months. We then post any movement to our P&L for the month.
We would like to use Navision in order to record a much more accurate cost every month which takes into account the cost of providing the parts and labour directly related with warranty and post this to a separate warranty g/l in our cost of sales.
On looking at what happens now, I notice that whenever we post a service invoice for a warranty job (this may be either a zero value/free of charge dummy invoice or a purchase invoice for whichever amount), the cost of the parts is transferred from inventory to the regular cost of goods sold account. There is no journal for labour costs. We do use a service management element within NAV 2009 R2 which handles all our service invoicing. When the warranty invoice is raised, there are line items for parts and labour however this information doesn't seem to be associated with the cost of these.
Ideally, we would like Navision to post the cost of the part, if this is a warranty job, to the warranty g/l code (not the COGS account as with other non-warranty parts) and also to post an entry for labour cost (perhaps based on a standard cost per hour depending on how long is spent on the site). Obviously the possibility of double counting labour costs would need to be avoided as these would have been already posted to overheads. Also, labour costs would be originally posted to more than one g/l. i.e. pensions, national insurance as well as overheads like the cost of running the vehicle).
Would anyone please be able to tell me if this is possible?
I've looked into the service management part of Navision but I cannot see how the item and resource codes can be used to calculate the cost of warranty.
Any help or advice would be greatly appreciated.
Thank you,
Jennifer
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