(When prices are rising, the balance sheet shows greater value. In business environments where product cost is stable. In inventory valuation, it is assumed that the first items placed in inventory are sold first. The following methods are supported in Dynamics NAV: Costing methodĪn item’s unit cost is the actual value of any receipt of the item, selected by the FIFO rule. Together with the posting date and sequence, the costing method also influences how the cost flow is recorded.
Stock can be quickly and easily re-valued if necessary.Ī detailed example of how costing in Dynamics NAV 2013 works can be found HERE.The costing method determines if an actual or a budgeted value is capitalized and used in the cost calculation.
The costs of sales are retrospectively adjusted if the cost of the purchases that relate to them changes. Posting to accounting ledgers is automated thus reducing the chance of errors being made.Ĭosts are re-adjusted based on actual invoiced costs. Recording of costs when items are received or shipped as opposed to when they are invoiced and paid for. Offering a number of different costing methods including FIFO, LIFO, Standard cost and costing by specific item serial nos. Microsoft Dynamics NAV 2013 does this by: This is important not just for accounting purposes but also to be able to gauge the profitability of each transaction. Not all businesses value their stock in the same way and it is important that the material costs of each sales transaction accurately reflect their costs, which can change long after stock has been sold. Accurate costing of stock transactions is essential to managing a business successfully but it is not as easy to do this as you might think. As you would expect, the package offers rich functionality within an easy to use interface. Microsoft Dynamics NAV® 2013 is the latest release of the well-known and established ERP solution for all kinds of businesses of whatever size.
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