Cost Amount Non-Inventoriable Negative for both Purchase Invoice & Purchase Credit Memo

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Dear Dynamics NAV Community,

We have an issue. The customer creates purchase invoice for Item Charge and applies the Item Charge to Sales Shipment. Then later, they want to reverse the purchase invoice, so they create a Purchase Credit Memo with same item charge and apply it to same sales shipment.

Then the issue is that the purchase invoice and purchase credit memo both have negative amount! I would expect that the purchase invoice would have a negative amount and the purchase credit memo would have a positive amount. The G/L entries are correct, so only issue appears to be with value entries.

See my screenshot below. Customer is using NAV 2015 AU version 8.00.37874.

Thanks in advance for any help you can possibly give. I know how to debug the code, but I am concerned about fixing this in right way.

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AJAnsari 5,754 on at

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Can you please explain why a Purchase Invoice with an Item Charge is being applied to a Sales Shipment Line?

You typically apply an Item Charge on a Purchase Invoice to Purchase Receipt Lines, Return Shipment Lines, or to lines on the Purchase Invoice itself.

If you must apply freight charges from a third party freight vendor for items sold to a customer, there has to be a better way. For example, you can create a Sales Invoice with an Item Charge applying to a Sales Shipment, and if this amount is payable to a freight Vendor, then creating a Purchase Invoice in the same amount using a G/L account for Freight Expense, or something similar. You can create some code automation to allow a Purchase Invoice to be created from a Sales Invoice upon posting (or by pressing an action).

Later, if a Purchase Credit Memo is created, you would not have these 'opposite sign' issues.

I hope this helps. If my response has answered your question, please verify by clicking Yes next to "Did this answer your question?"

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Hi AJ,

I was also surprised that the purchase Item Charge was applied to a sales shipment, but actually the system does allow item charges on a purchase invoice to be applied to a sales shipment (even if it does seem a bit odd). In this case, the item charges are for freight and clearance on exports.

This company is a manufacturing company and in their case they have not been able to implement production orders yet. In their process, they post a negative adjustment for the raw materials and a positive adjustment for finished goods.

I believe that they have decided to apply the item charges to the sales shipment because all the finished goods are posted as positive adjustments in the item journal and it is not possible to apply an item charge directly to a positive adjustment (i.e. to their finished goods).

I am a little confused about your suggestion "For example, you can create a Sales Invoice with an Item Charge applying to a Sales Shipment". It seems that might affect accounts receivable or revenue.

At this point, I am especially concerned with fixing the data. Any ideas about how to get the data correct? Also, I wonder if Microsoft could fix this issue. It seems that if they have a function that allows applying purchase item charges to a sales shipment, then this function should work properly.

Thanks for your help! I hope to solve this soon.

Regards,

Ted

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By the way, I tested this scenario in NAV 2017 and this issue is not happening (although curiously another issue is happening that the statistics are not calculating correctly for profit in this scenario).

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RobertasR 5,004 on at

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Hi Theodore,

it is pretty common to apply the purchase invoice to the sales shipments - if you want to add costs on the outgoing item after you have shipped it (which is the case with outgoing freight / insurance). However the postings seem to be incorrect. The Invoice should have created the negative non-invtb. cost, and Credit Memo - positive. Worth checking if the Credit Memo wasn't posted with negative values in the document itself, which would be the user mistake.

It is working fine in 8.0.41370, so if it's not user-related issue, you might need to apply the new CU, unless it is caused by some bespoke development.

To correct the data you need to see what was posted to GL and vendor Ledger Entries. After applying new CU to prevent from incorrect postings again, you will need to:

- post credit memos against those shipments to correct the Cost value on ILE/Value Entries

- post invoices against the new credit memos to correct Vendor Ledger Entries

- make adjustments to GLs that would offset the credit memos/invoices posted AND fix the previous posting IF it impacted GLs incorrectly.

A lot of postings if you want your costs on items (Value Entries) to be correct.

Hope that helps.

Robertas

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Hi Robertas,

Thanks for your answer. Actually, I tested in the Demo Database (with no customizations) for NAV 2015 AU version 8.00.37874 and the issue does exist in this version. Also, the customer posted the credit memo correctly.

Right now, we just want to fix only this issue, as I do not want to have to go through the entire upgrade process to move them to new CU of NAV.

Right now I have no idea what hotfix actually fixes this issue.

Again thanks for your suggestion.

Regards,

Ted

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RobertasR 5,004 on at

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Of course, the upgrade is a big process, but I'm not sure how to fix the cost of the item after it has been shipped in your case. If you find any way to correct non-invtbl cost without posting the purchase invoice/cr.memo, I would genuinely like to know how....

Unless you try posting the Item Charge purchase credit memo or invoice with negative sign and see what happens. Still you're left with a lot of manual transactions to do.

Robertas

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