Professional Documents
Culture Documents
• Overview
• Accounting for Microsoft® Business Solutions – Navision®
Inventory
Overview
The inventory equation:
Page 13
Microsoft Navision Inventory Costing
There are two ways to reconcile inventory with the general ledger:
• Using the Post Inventory Cost to G/L batch job: postings to G/L are
made when the batch job is run, and postings can be summarized per
posting group.
• Activating the automatic cost posting option: the program makes
postings to the G/L every time an inventory posting is made.
The following two sections clarify the general principles of inventory posting and
posting of inventory to G/L. An in-depth explanation of the inventory costing
mechanism in Navision is the focus of the rest of this course.
Page 14
Chapter 3: Inventory Costing Principles in Navision
Every time one of the above transactions is posted, the program records the
resulting change in inventory quantity as an item ledger entry.
In this way, one or more value entries can exist per item ledger entry. Each of the
above listed value entry types are looked at in detail in the subsequent sections of
this chapter.
Page 15
Microsoft Navision Inventory Costing
As with other kinds of entries in the program, item ledger and item value entries
cannot be deleted after a document has been invoiced. If a document with
incorrect information, for example with an incorrect unit cost or quantity that
affects inventory valuation, is posted as invoiced, a corrective document must be
made in order to create a balancing entry, and then the original document must be
re-posted with the correct information.
NOTE: Starting with Navision version 3.60, a function of Undo Quantity Posting is
available on the posted shipment and receipt documents to enable the user to undo an
incorrectly recorded quantity in a transaction once a related document has been posted
as received/shipped.
Due to a number of factors, the cost amounts initially posted as the value entries
may not always reflect the correct inventory value. Therefore, the inventory costs
must be adjusted. The adjusting function – in the program called the Adjust Cost
– Item Entries batch job – is described in the section “Inventory Adjustment,” in
the following chapter.
In principle, the program uses the entry type to determine which general ledger
account to post the entry to, while the sign of the quantity on the item ledger
entry determines whether the entry is an inventory increase or decrease.
Page 16
Chapter 3: Inventory Costing Principles in Navision
The following chapter describes in detail the ways in which the program first
records inventory acquisition costs and then cost of goods sold.
Page 17
Microsoft Navision Inventory Costing
1.
2.
3.
Page 18