Thursday, 21 December 2006

Unit Cost Calculation

1) Inventory in Navision is valued based on the Value Entries .

2) Cost is recorded in the Cost Amount (Actual) field in Value Entry table.

3) Navision will copy value from Unit Cost (LCY) field on Purchase Line / Unit Cost field on the item journal line to Cost Amount (Actual).

4) Direct Unit Cost Excl./Incl. VAT in Purchase Line / Item Journal Line is copied from Item Card Last Direct Cost.

5) For Item Journal Line, the Last Direct Cost is copied to the Unit Amount field on the item journal line.

6) Unit Cost in the Purchase Line / Journal Line is calculated based on
a) Last Direct Cost
b) Unit Cost

7) Formula to calculate Unit Cost (LCY) field in Purchase Line:
Unit Cost (LCY) = (Direct Unit Cost - (Discount Amount / Quantity)) * (1 + Indirect Cost % / 100)) + Overhead Rate

8) Formula to calculate Unit Cost in Item Journal Line:
Unit Cost = Unit Amount * (100% + Indirect Cost %) + Overhead Rate

9) For Standard Costing method, Standard Cost in Item Card will be copied to the Purchase Line Direct Unit Cost Ext./Incl. SST.

10) Summary of the flow of cost - Non Standard Cost:

Item Card (Last Direct Cost) --> Purchase Line (Direct Unit Cost Excl./Incl. SST) --> Purchase Line (Unit Cost (LCY) --> Value Entry (Cost Amount (Actual))

Item Card (Last Direct Cost) --> Item Journal Line (Unit Amount) --> Item Journal Line (Unit Cost) --> Value Entry (Cost Amount (Actual))