Hi to all inventory costing experts in NAV,
I need an advice please.
In Inventory Setup, the following functionalities are used:
Automatic Cost Posting = Yes
Expected Cost Posting to GL = Yes
Automatic Cost Adjustment = Day
Scenario:
User posted the following transactions (in order) against 1 unit of ITEMABC
- Post purchase receipt
- Post sales shipment
- Post sales invoice
- Post purchase invoice
Since expected cost posting is enabled, on the time that the sales invoice was posted, I expect that NAV will reverse the interim g/l accounts and debit the real g/l accounts. So I am expecting the following accounting entries to flow:
Dr. Inventory (Interim)
Cr. COGS (Interim)
Dr. Inventory (actual cost)
Cr. COGS (actual cost)
Dr. A/R
Cr. Sales
Based on what had actually happened in NAV, the posted sales invoice had only the following g/l entries:
Dr. Inventory (Interim)
Cr. COGS (Interim)
Dr. A/R
Cr. Sales
There was no actual g/l accounts used, thus, making the gross profit overstated since no cost amount has been posted.
However, the actual g/l accounts were only got entered by NAV when Adjust Cost - Item Entries have been executed.
Why is that? I thought that since Automatic Cost Adjustment is enabled, NAV should always update the cost and post the relevant entries against the real and interim g/l accounts.
Is there any documentation of NAV that would explain this kind of behaviour? In trading companies, it is very usual that they get the vendor invoice after a while after they invoice the customer.
Any advice is greatly appreciated.