Dynamics F/SCM Customer Experience (CRM) Dynamics GP Dynamics Business Central (NAV) Dynamics SL Power Platform Fabric Copilot

[Richard Luu]

Hello,

Our receiving department received 100 units @ $43/unit (inventory) in the system. Meanwhile, we updated and invoiced at $0/unit in the PO… with the expectation the item will appear at $0 unit cost in the Sales order lines. However, the unit cost appears to be defaulted to be $43. I checked the Item Card and it also shows an average unit cost is $43.. 

The purpose is to expense these rather than hold in inventory and post to COGS. However, we needed the inventory in the system so our fulfillment center can fulfill the order.

Thank you,
Richard

[David Wiser]

Assuming you ran adjust costs, while the item still shows the unit cost of $43, it should be zero if you drill into the detail.  It will also default to zero on any future journals.

As far as the sales invoice, I’m assuming you created and invoiced the sales order while the unit cost on the item was still $43.00.  Even though the unit price changed later, the adjust cost program will not change the unit cost on the sales line.  If you check the item ledger entry and value entry table, the unit cost for the sale should show properly at zero.  The sales lines unit cost not changing when the item card unit cost changes is a known issues with NAV.  If you prepare any profitability analysis, the costs should always come from the item ledger entry which pulls from the value entry tables, not the sale line table.

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Dave Wiser
Controller
Beckwith & Kuffel
Seattle WA
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[Andrew Good]

If you want to receive inventory at $0 value regardless of what invoice amount, then you need to setup you items with Standard Cost and set the Standard Cost = 0. You will need to direct your Purchase Price Variance Account, in the General Posting Setup, to you expense account. I have only every seen a company do this for maintenance and repair parts.

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Andrew Good
President
Liberty Grove Software
Oakbrook Terrace IL
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[Jason Luchka]

If the item is still showing a non-zero unit cost after you have invoiced and run adjust-cost, and you still have inventory on-hand, you can use the item revaluation journal to revalue the item to $0.

Also, look into field 5409 Inventory Value Zero on the item table. If you check this box true, the item will carry zero value, even if you purchase it from a vendor. You cannot produce a zero dollar item via prod. order from what I’ve seen, however.

We use Average cost and have many items where Inventory Value Zero = True. It works as expected for us. You will need to test test test as it is possible we may have made modifications to base NAV functionality with regards to this field before I started here.
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Jason Luchka
Programmer / Analyst
FFR Merchandising, Inc.
Twinsburg OH
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