Costing methods in MS Dynamics NAV (Inventory Costing-basics) Ing.J.Skorkovský,CSc. MASARYK UNIVERSITY BRNO, Czech Republic Faculty of economics and business administration Department of corporate economy Inventory Costing overview Known Known Recorded Solved for - vypočítáváno Inventory costing overview Costing methods (FIFO) Nákup Sklad-start Prodej (Náklady na prodané zboží ) Sklad-konec Cost flow assumption Accounting and inventory 0D . Starting Date . . . . . . . . . . Ending Date Value of Quantity on Hand Value of Inventory Increases Value of Inventory Decreases Inventory Value on Ending Date Inventory costing flow– zaúčtování množství Item Ledger Entries Sales (incl. purchase returns) Transfers Inventory Adjustments Purchases (incl. sales returns) Output Consumption Distributor Manufacturer Inventory costing flow– zaúčtování hodnoty Value Entries Direct Costs Rounding Revaluations Indirect Costs Variances Inventory posting flow • FIFO LIFO Average Specific (Fixed application) Viz označování položek s pomocí šarží !!! Výběr vyrovnání je určován uživatelem. Application algorithm - algoritmus vyrovnávání Standard – pevná cena Fixed application -pevné vyrovnání Average Cost Calculation Stock Keeping unit (Skladové jednotky) Inventory Value determination Inventory Transaction Value Entries (položky ocenění) Item Ledger Entries (položky zboží) General Ledger Entries (hlavní kniha) Reconciliation Posting Average Cost calculation setup Average Calculation per day 3 times Purchase of one item With Costing methods=Average, Costs 10, 12 and 14 ->36/3=12 Average Calculation per day We have sold by use of item journal one item with cost (manually entered) 20, so Closing Entry is 36-20=16 and Unit Cost per one item is 16/2=8 After adjustment Values entered were 10+12+14 and finally applied value after sales was 10, so 36-10=26 = ending inventory value 26/2=13 After adjustment So manually entered unit cost=20 was replaced by applied item entry with cost 10 End of section (Costing methods)