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Microsoft Dynamics NAV (Archived)

FIFO V STANDARD costing in BOMs NAV 2015

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Posted on by Tim Drew 5

Hello

Is it possible to create a BOM product with FIFO costing method?

We have BOMS on NAV 2016 with FIFO costing, but our test show that the costs do not roll up.

BOMS on STANDARD costing roll up costs ok.

We have researched MSDN and cannot find advice suggesting that BOMs are set to STANDARD costing. NAV does not create any error messages when setting up the BOM with FIFO costs. Our thoughts were that as the BOM is made up of FIFO components then the BOM should also be FIFO.

As NAV does not allow costing changes from FIFO to STANDARD when transactions are present this means the BOM ITEMS are locked and cannot be changed to STANDARD cost.  

The ideal solution would be to make the FIFO roll up costs correctly.

Failing this a method to allow switching from FIFO to STANDARD costs on the BOM items, this may require removing and re-posting the stock transactions, if this is even possible to do.

Any suggestions?

Regards

Tim

*This post is locked for comments

  • Tim Drew Profile Picture
    Tim Drew 5 on at
    RE: FIFO V STANDARD costing in BOMs NAV 2015

    Hi Alexander, yes I agree, we did test the Adjust Cost Item Routine, but it gave some incorrect results due to the way the ITEMS  were imported from a legacy system. Newly created ITEMS work fine now and we are really benefitting from running planning with BOMs, so much more accurate and no manual journals of stock items. Tim

  • Tim Drew Profile Picture
    Tim Drew 5 on at
    RE: FIFO V STANDARD costing in BOMs NAV 2015

    Understood, thank you, we will continue to test the costs but it is looking good now. Regards

    Tim

  • Suggested answer
    Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: FIFO V STANDARD costing in BOMs NAV 2015

    Yes. You need to run the Adjust Cost Entries Batch Job at periodic basis (preferably daily) to have exact costing.

    Also, if you use Production Order, you need to change the production order status to finished and then need to run the routine to have actual rollup cost.

    Hope this helps.

  • Verified answer
    Alexander Ermakov Profile Picture
    Alexander Ermakov 28,094 on at
    RE: FIFO V STANDARD costing in BOMs NAV 2015

    After your postings, you need to run the Adjust Cost-Item Entries job which is in ../Departments/Financial Management/Inventory, this should populate correct FIFO values for your BOM postings.

  • Tim Drew Profile Picture
    Tim Drew 5 on at
    RE: FIFO V STANDARD costing in BOMs NAV 2015

    Hi Vishal

    I think that the BOM roll up costing is not posting correctly because the "Adjust Cost-Item Entries" routine needs to be run first. Does this sound correct to you?

    Regards

    Tim

  • Tim Drew Profile Picture
    Tim Drew 5 on at
    RE: FIFO V STANDARD costing in BOMs NAV 2015

    Hi Vishal,

    Thank you for your prompt reply, we are checking some examples and will post a reply soon.

    Tim.

  • Verified answer
    Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: FIFO V STANDARD costing in BOMs NAV 2015

    You can certainly create the BOM product (Assembly BOM or Production BOM) having FIFO costing method.

    There is no issue with this.

    Once you post the related orders and run the Adjust Cost Item Entries Batch job, system would give you the accurate costing based on the FIFO posting.

    Are you referring any standard roll-up cost field at Item Card, where you feel the calculation is not correct? This might be just for reference only and may not give you the exact result. However actual inventory / financial costing would work perfectly alright.

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