"Liq. by number order? ehem ... sorry ... What's that?
The title I have chosen is not particularly definitive, but if you continue reading you will understand, I speak of a field named Navision.
In the first post in the series of costs, we exactly the same movements of products for different products, each using a method other than inventory valuation, covering all inventory valuation methods used in Microsoft Dynamics NAV.
explain how costs were calculated on the movement of product. Implicitly, the cost calculation is telling us how to settle the movements of products (of which entry takes the stock out movement). This last point is that you can see and verify the manner explained in the fourth post of the range of costs.
Following the examples, and even making their own examples and noting Outstanding Amount field on the movement of product after each record, we find that the settlement movement of product is performed as follows:
- FIFO: Settlement of movement following a
- FIFO LIFO Liquidation of movement following a LIFO
- Standard: Settlement of movement following a FIFO
- Middle Settlement movements following a FIFO
- Special: Clearance of movement following a FIFO within the Lot No Serial No selected output
You may wonder if there is any way to alter the clearance of goods movements (and thus the cost thereof). In some cases it might be useful.
Consider the following scenario: I have in stock a product that a customer needs. When I deliver to the client, I realize it has some flaws and can not be used. A new product purchase can take days to arrive, but the client needs it urgently. There is a possibility of getting the product the same day to purchase elsewhere, but its price is significantly higher.
The profit margin of this product is 20%. By purchasing a this other provider, we get a profit of only 5%, but we'll have a satisfied customer, so we decided to proceed in this manner.
In the time sales are recorded, are in stock 2 units of the product: the flawed (although he has not received a refund or is due to be checked or repaired) and the urgent, being the defective first came into stock.
imagine that the method of valuation of stocks of this product is FIFO. If we register the sale without the sale we will take the cost of the first unit, the defective, a lower cost.
within a time When we do a cost analysis, profit, etc.., All the reports tell us that our profit on that sale was 20%.
actually, but we know beyond any doubt that the sale was the second of the units of the product, so that the benefit was much lower.
Following the theoretical assumption, I turn to throw the same question: is possible to alter the clearance of goods movements (and thus the cost thereof)?
The answer is yes. Thank goodness. If I set all this supposed to mean you can not finish this post and would not have had much grace.
The "alteration" can be done at the same time of registration, and can also be done afterwards.
In today's post will explain what you can force a liquidation of certain movements of goods at the time of registration using a field called "Liq. By no order." Another day will explain how to do afterwards.
"Liq. By no order." The field name is not particularly descriptive, but if you look the help of Navision says
"This field is used if the amount on line journal should settle on a document already registered. If so, enter the number of product movement should be settled on the line every day. "
aid may not say much, but it's a start.
To begin, we say that this field can be found in documents sale and purchase of products in newspapers, on the day of manufacture, etc..
If a line in any of the sites we have said, we introduce a product number and then drop down the field, "Liq . by no order ", we display all movements into the product in stock (ie, those with outstanding amount). Among the entries shown, we must select the one to which we give out.
Let's see a practical example:
We have a product with an inventory valuation method FIFO.
This product we have made 2 entries of 10 and 5 units at a cost of 10 and 11 per unit respectively.
addition, we performed an output of 3 units.
The current status of the product is shown in the picture below
now proceed to make a new sale. Although the first of the entries still have quantities in stock (7 units), we want to take the stock sale of the second FIFO entries although it would behoove take stock of the former.
Well, we created a sales document, we introduce the product and the quantity to sell, and in the field, "Liq. By no order," select the second entries (in this example, movement No. 323).
now recorded the sales order, and when we analyze the movements in the product we see that we got what we wanted because, as shown in the image that follows :
1. The outstanding amount of the first entries is still 7
2. The outstanding amount of the second entries has changed, now 3
3. The unit cost of sales was recorded just 11-
Cristina Nicolàs
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