Outbound transactions represent inventory value flowing from the balance sheet to the income statement, where it becomes cost. The cost assigned to items going out (Sales Shipments, Purchase Returns, and Negative Adjustments) is determined by the costing method chosen for that Item. Items coming into inventory (Purchase Receipts, Sales Returns, and Positive Adjustments) have their direct acquisition costs determined either as Actual (FIFO, LIFO, Specific, and Average) or an assigned Standard cost. Inventory Value in Dynamics NAV is maintained in the Value Entries table. raw materials), but use a Standard Cost for the goods it manufactures. For example, a manufacturing firm may choose FIFO for Items it purchases (i.e. This makes it possible for businesses to select a “mixed model” of costing. NAV allows the specification of a Costing Method per Item master record. Depending on the chosen procedure, a costing practice will determine if a budgeted or actual value is used in the cost calculation and it will impact how the cost flow is recorded.ĭynamics NAV features integrated inventory management and costing through perpetual inventory. There are a variety of costing methods to choose from in Microsoft Dynamics NAV.
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