adjust item cost price

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Hi all

I would like to get some feedback on this scenario:

First I buy Item "A" to a cost price of 10EUR and put it on stock (FIFO). Afterwards I sell the item and would like to have a COGS of 8EUR and "manually" post the difference to another account. Is this possible?

I have tried to adjust the unit cost price on the sales line to 8EUR, but when I run "Post Inventory Cost to G/L" the posting readjusts to 10EUR.

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Alexander Ermakov 28,096 on at

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You can achieve this by posting a cost adjustment in the item revaluation journal, to devaluate the item cost to 8 euro. Then run Adjust items cost batch to correct system entries.

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Indikauk 1,759 on at

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Hi Allan

I'm Not Clear What your are Trying Achieve but, I can provide you the below options,

Since Navision Keep Tracking the Original Item Cost for Calculate the Cost of Sales to Achieve your Goal some how you need to reduce the Item Cost from 10 - 8 for that you can Credit Memo With Item Charges Assignment to reduce the Value in your case i don't know this will help or not, and the other option is Go to Revaluation Journal and revalue you particular item inventory to unit cost 8 and post it, the difference will go to inventory adjustment Account and you have to pass the Journal Entry to between Inventory Adjustment Account and the Account that what you want it to be post.

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You can use Revaluation Journal to reduce your Purchase Cost to 10 EUR to 8 EUR.

Afterwards, you would require to run Adjust Cost Item Entries batch job, which would help you to get your desired result.

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Thanks for the quick replies.

I was a bit unclear in my previous post. The scenario would be that I purchase 10 of item "A" to 10EUR, but would like to be able to have different COGS for all of the 10 items when I sell them.

In this case I cant see the revaluation journal as a solution?

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Indikauk 1,759 on at

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HI Allan

Your Requirement is to Calculate Cost of Sales to a Different Cost Right, as per your example Your Purchase Cost Will be 10 Euro but you nee COGS as 8 Euro. to achieve this as i mention above you need to make Credit memo with Charge Item and Reduce the Purchase Cost or you need to Go and Change the Value of Inventory to Reduce the Cost of Item by Revaluation the amount to the figure that you need.

Because Navision keep Tracking item sold on which purchase and any changes to the purchase cost it will be revalued when you run Adjust cost item report cost of sales will be adjusted.

Just Try it on you Test Database and See.

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Revaluation Journal would change the Overall Inventory Unit Cost (Valuation) from 10 Eur to 8 Eur (for e.g.).

But if you want COGS to be different for all the 10 PCS, you would not be able to achieve this in standard NAV ERP system.

Indirectly you are playing with Inventory Valuation (by having different COGS) which is not ideal / common requirement across globe and not acceptable in certain part of the globe.

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Alexander Ermakov 28,096 on at

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Revaluation journal is not an option then if you buy 10 items at once. If you want to revaluate COGS of each item separately, you need either to buy them as 10 different item cards or variants, or treat each item as a separate lot.

Or, using one item card, buy them with ten separate documents and try to revaluate, assuming FIFO method, but it will be a nightmare.

One more option is to allocate item charges to the Sales Order, if you sell it one by one. In this case, there will be a different COGS of each item when you run Adjust Cost batch job.

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Hi Indika

If I use the revaluation Journal I would be forced to devaluate all of the 10 Items right? I would only want to devaluate the specific item for the specific sales line.

The solution with the CM might actually work, but I would have to make a lot of CM's in this case. Could this be done trough a journal? which?

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Hi Allan,

You would not be able to devalue the specific item quantity (as per specific sales line) (Unless you use Serial Nos). This would be tedious and time consuming job.

CM would also reduce your COGS for entire Purchase Quantity (all 10), not specific Sales Line Quantity.

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Indikauk 1,759 on at

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Hi Allan

Since You Are Using Costing Method FIFO your can Do The Revaluation Journal In the Option "Calculate Per" you can Select Item Ledger Entry and Revalue your each Purchase. But if you have Average Cost then it will Revalue Total Inventory.

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