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For what i understand NAV allows the item to be batch(Lot) tracked
Purchases:Posting date = 01/01/2021Item code = AQty = 1Item cost = 1000Lot No = A1
Posting date = 02/02/2021item code = AQty = 1Item cost = 2000Lot no = A2
When we make a sales order : Posting date = 03/03/2021Item code = Aqty = 1Item Price = 3000Lot No =A2 ( that means system has to take the item cost = 2000 /-)
Is there any chance that using FIFO the system can always take in consideration the unit cost of the first item in stock?In the above case the unit cost should be 1000 , although i'm selling the Lot A2
Thanks for the help.
Based on what you are trying to accomplish.. You want to make sure that what Item you are selling the actual Cost of the Items FIFO layer is used for costing. Here are a few solutions:
• Prior to posting a negative movement of inventory in NAV, the user can manually fill in the “Applies-to item entry” field as a way of telling NAV to ignore FIFO logic and instead direct NAV to pull from some other open item ledger entry for that item. This especially makes sense when you have dramatic cost fluctuations with a given item. Take for example an item that has “two” quantity on hand. The oldest unit has a cost of $300 and the more recent unit has a cost of $100. If we create a $250 sales order to sell this item, and in reality, we are selling them the $100 item, the “Applies-to item entry” field could be used to instruct NAV to pull the $100 item even though it’s not the oldest. Taking this step would result in a +$150 margin sale. Failing to take this step would result in a sale with a -$50 margin.
• After posting a negative movement of inventory, we can also undo a FIFO application and re-apply the outbound item ledger entry to a different open item ledger entry by using the application worksheet.
Since the Costing method is FIFO (First In First Out) – this method uses the actual value of the earliest (by Posting Date) open positive entries with Remaining Quantity to move costs for outbound transactions. The above solutions will help you correctly select the Item you are actually shipping against the Sales Order for costing.
Hope this helps.
Hi Steven and thanks for your help.
But i think it won't work, because since the Lot's are different, i can't use the “Applies-to item entry”. That would work if the lot of the item was the same.
In this scenario although the item is the same it was bought with two different lot's with different costs.
Table 336 function TestApplyToItemLedgEntryNo makes that validation.
Using your example, on the Sales Order Line, in the Applies-To field, I will choose the Item Ledger Entry (the Lot Layer I am selling) on the Sales Line. So your example said you are selling Lot A2, which, make believe, is Entry #12345 in the Item Ledger Entry. I select that line and when I post the Revenue = 3,000 and after Adjust Cost runs (if manual), the COGS = 2,000, since you selected the ILE record it applies-to is the $2,000 Item layer.
I would open Cronus or if you have a play company and process the Sales Order as I have outlined. Post Ship and Invoice and navigate to the entries.
In ILE you have 2 entries:
When I select the Item Tracking Lot number I enter the Appl.-To Item Entry to select the FIFO Lot Layer.
Now Post Ship and Invoice:
My entry for COGS selected the 2.00 Unit Cost vs. the $1.00 Unit Cost, which was NOT the Lot No. shipped.
Hope this heklps.
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