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Interim accounts and Nav

Microsoft Dynamics NAV Forum

Langports_sandeep asked a question on 24 Sep 2018 2:32 AM

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I am new to the inventory module and the posting setup. Could someone explain the specific accounts that are impacted between sales, purchases and inventory with regards to the following process.

Purchase order created then receipted and then invoiced.

Sales order created then shipped and then invoiced.

If you could use the specific Nav accounts that would help me create a process document.

Cheers

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Hannes Holst responded on 24 Sep 2018 3:12 AM
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Hi,

There are no specific "NAV accounts".

The finance-part of NAV is solely based on the structure of the company.

(This is done together with the NAV partner normally.)

To get a broader understanding of the General Ledger, start by reading about Posting Groups:

docs.microsoft.com/.../finance-posting-groups

Or let me know any specific question here.

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Langports_sandeep responded on 24 Sep 2018 5:38 AM

Thanks Hannes, I am trying to understand the typical journal entries that happen in the background between purchases, direct cost applied, inventory interim, inventory, payables, cost of goods sold and sales. For a nursery that buys plants from the producers using purchase order and then receive them and then invoice them, how will that affect the above accounts?

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Hannes Holst responded on 24 Sep 2018 6:12 AM
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That depends solely on the Chart of Accounts and the Posting Group Setup of your company.

To get an understanding of the postings, you can either run "Preview Posting" in the Purchase Order.

Or alternatively, after the Purchase Order is posted. Go into "Posted Purchase Receipt", select the receipt and push "Navigate" (not the tab NAVIGATE). You will see all related records to this document number. Mark the "G/L Entry"-line and then click "Open Related Entries" to see all transactions in the G/L.

The same is possible for the Purchase Invoice.

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Langports_sandeep responded on 24 Sep 2018 8:03 PM

thank you Hannes.

So am i correct in concluding

Purchase order received affects the following

Dr Inventory Interim

Cr AP Interim (even though i cannot see this in the posting setup)

When purchase order invoived

Dr Inventory

Cr AP

Dr AP Interim

Cr Inventory Interim

Dr Purchase

Cr Direct Cost Applied

When Inventory shipped

Dr AR interim

Cr Inventory Interim

When inventory invoiced

Dr Inventory Interim

Cr AR interim

Dr AR

Cr Sales

Dr Cost of Goods Sold

Cr Inventory

Cheers

Sandy

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Robertas Rackauskas responded on 25 Sep 2018 2:58 AM
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Hi Sandy,

almost as you have described, except:

- Not AP Interim, but GRNI accounts which in Gen Posting Setup is called 'Inventory Accrual Account (Interim)'

- Not AR Interim, but COGS Interim accounts which is in Gen Posting Setup

Plus, of course, tax - depending on which country you operate in.

Robertas

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Langports_sandeep responded on 25 Sep 2018 5:44 PM

Awesome Many thanks.

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Langports_sandeep responded on 26 Sep 2018 5:52 AM

Hello Robertas

Can i get your guidance on the jobs module? The entire posting setup is confusing me. How do the entries work in the jobs module? I have got an understanding of the job tasks, planning lines and then consuming items, resources and sub contractors and creating job journals. What happens after? How does the transaction flow from WIP to P&L and then finally to revenue and costs? I hope i have explained correctly.

Cheers

Sandy

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Robertas Rackauskas responded on 26 Sep 2018 10:55 AM
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Oh dear, that is big beast jobs module :) I don't think I can explain it in a post, as there are so many variation and no 'commonly' used framework, as it very much depends on the industry and the purpose of using costs - whether you use items, resources; costs or just revenue, or maybe just time spent, etc.

The basic principle is such that item consumption would create GL movements (depending on inventory settings) - credit stock, debit adjustment account. Posting GLs would naturally affect GLs, and posting Resources - wouldn't.

If the job is finished within the fiscal year, companies choose not to bother with WIPs. These are calculated based on the WIP Calculation type and Job Posting Setup, posting recognized sales, costs, etc. Creating invoice for the job/'job task' would also generate PL entries. How you use them depends on the type of projects and what you want to see in your chart of accounts.

Sorry I can't give you more details on this, but this is a very big topic to cover :)

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Robertas Rackauskas responded on 25 Sep 2018 2:58 AM
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Hi Sandy,

almost as you have described, except:

- Not AP Interim, but GRNI accounts which in Gen Posting Setup is called 'Inventory Accrual Account (Interim)'

- Not AR Interim, but COGS Interim accounts which is in Gen Posting Setup

Plus, of course, tax - depending on which country you operate in.

Robertas

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Robertas Rackauskas responded on 26 Sep 2018 10:55 AM
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Suggested Answer

Oh dear, that is big beast jobs module :) I don't think I can explain it in a post, as there are so many variation and no 'commonly' used framework, as it very much depends on the industry and the purpose of using costs - whether you use items, resources; costs or just revenue, or maybe just time spent, etc.

The basic principle is such that item consumption would create GL movements (depending on inventory settings) - credit stock, debit adjustment account. Posting GLs would naturally affect GLs, and posting Resources - wouldn't.

If the job is finished within the fiscal year, companies choose not to bother with WIPs. These are calculated based on the WIP Calculation type and Job Posting Setup, posting recognized sales, costs, etc. Creating invoice for the job/'job task' would also generate PL entries. How you use them depends on the type of projects and what you want to see in your chart of accounts.

Sorry I can't give you more details on this, but this is a very big topic to cover :)

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