1) Navision use the following values in item card to calculate unit cost in sales line (item journal line)
a) Unit Cost
b) Average Cost (LCY)
c) Standard Cost
2) Navision uses Average Cost as the initial suggestion for the Unit Cost in sales line for all costing methods except standard cost.
3) Navision will first copy the Average Cost (LCY) in item card to Unit Cost field in item card.
4) The value in Unit Cost field is then copied to the Unit Cost (LCY) field in Sales Line table (Unit Cost field in item journal line).
5) The value in the Unit Cost (LCY) on sales line will then copied to the Cost Amount (Actual) in Value Entry table.
The above methods are true for Navision 3.7. For Navision 4.0 and above, the costing calculation has been changed.