Navision will pick the default location to be used in sales / purchase document based on the following priority:
1st priority - Customer / Vendor Card
2nd priority - Responsibility Center Card
3rd priority - Company Information Card
Both Purchase and Positive Adjmt. Entry Types in Item Journals will increase quantity in inventory. When you select Purchase Entry Type, Navision will default the unit cost from Item Card Last Direct Cost. If you select the Positive Adjmt. Entry Type, Navision will default the unit cost to the Item Card Unit Cost.
Read More..If you are using Average Cost, Negative Adjustment will take the average cost on the day the negative adjustment is valued (based on posting date and valuation date).
For example, when you do a Negative Adjustment in Item Journal, Navision will default the unit cost with the Unit Cost from Item Card. It doesn't matter whether you accept the default cost suggested by Navision or change the unit cost to other cost, because the Adjust Cost - Item Entries batch job or the automatic cost adjustment function will adjust the unit cost back to the average cost based on the valuation date. Therefore, no matter what cost you put in the Item Journal during Negative Adjustment will not affect the cost used in the negative adjustment.
If you are using Standard Cost, the unit cost in Item Journal will be defaulted to Unit Cost in Item Card, which is the current standard cost. Later, when the adjust cost function is executed, the unit cost posted by the negative adjustment will be adjusted to the unit cost of the positive entry which the negative adjustment is applied to. Let's consider the following example,
Jan 01, 2008 - Item A is created and standard cost is set to $10.
Jan 02, 2008 - Purrchase 10 units of Item A with $10.
Feb 01, 2008 - Change standard cost of Item A to $12.
Feb 05, 2008 - Purchase 10 units of Item A with $12.
Feb 07, 2008 - Negative 2 units of Item A.
So, on Feb 07 2008, when 2 units of Item A is entered into the Item Journal, Navision will default the unit cost to $12. Accept the cost and post the Negative Adjustment. The Negative Adjustment will be posted with $12. You can verify this by checking the Item Ledger Entries and Value Entries. Now, run the Adjust Cost - Item Entries batch job. After the Adjust Cost batch job completed successfully, check the Item Ledger Entries and Value Entries again. You should be able to see an adjustment entry with -$2 has been added to the Value Entries table to adjust the unit cost to $10.
The Negative Adjustment will take $10 instead of $12 as unit cost because the negative adjustment entry has been applied to the purchase entry created on Jan 02 2008, which is $10.
Microsoft has introduced Navigation Pane in Navision version 4.0 and 5.0. By default, the Navigation Pane is visible and docked to the left of the screen. You can show / hide the Navigation Pane by pressing Alt + F1 or using View --> Navigation Pane menu.
The following steps are not foolproof yet but it has helped me solved many average cost issues.
1) At item card, click on Item --> Entries --> Value Entries to open the value entries screen.
2) Copy all records in the value entries screen to Excel.
3) In the Excel sheet, sort the records by Valuation Date.
4) Add a column called Cost Amount to the Excel sheet. Cost Amount = Cost Amount (Expected) + Cost Amount (Actual). Use Excel formula to populate the Cost Amount column for all records.
5) Add a column called Cost Amount (Accumulated). As indicated by the column name, it is the accumulated value of Cost Amount from first record to the last record. Again use Excel formula to populate this column.
6) Add a column called Quantity (Accumulated). Quantity (Accumulated) is the accumulated quantity from first record to the last record. Use Excel formula to populate this column.
7) Add a column called Avg. Cost. Avg. Cost = Cost Amount (Accumulated) / Quantity (Accumulated).
8) Now, look for the last inbound entry record for each Valuation Date. The Avg. Cost for the last inbound record for each valuation date is the average cost for the day.
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