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Multiple costing methods

  • 1.  Multiple costing methods

    Posted 28 days ago
    I'm relatively new to NAV.  Certainly new on the inventory side of things with this product.  I'm curious about costing methods.  We have serialized items and items that are not that turn relatively quickly.  We also have a handful of items that are purchase in bulk.  The serialized items we are using "Specific" and the items that are not are set up as FIFO.  The bulk items we have set up with Average costing.

    I've heard that having multiple costing methods for inventory doesn't play well with NAV.  I wanted to find out if this is correct.  If so, any suggestions for how to make these scenarios play well in NAV.  We are on NAV2016.

    Thanks.

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    Curtis Bluhm
    Gladwin Machinery & Supply
    Fridley
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    Academy - Online Interactive Learning from Experts


  • 2.  RE: Multiple costing methods

    TOP CONTRIBUTOR
    Posted 22 days ago
    Hello Curtis,

    Not sure why someone would say that a mix-and-match of costing is an issue.  I have seen that done successfully in the past with no issues.

    I think the hardest this is proving the costing when you have multiple costing methods, however that is only because you have to have three accounting processes to prove out COGS, not a technology issue.

    Also, I find that most people don't fully understand how Average and Specific costs work, and those people will tell you it doesn't work when in reality they just don't understand those costing methods.

    Have you tested costing in your environment?  If so, and if it is working fine, then keep going with it.

    Sincerely,
    Victor Diercksen

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    Victor Diercksen
    CIO
    CIO/NOW Inc.
    Sandy UT
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    Academy - Online Interactive Learning from Experts


  • 3.  RE: Multiple costing methods

    Posted 22 days ago
    Thanks Victor!  I really appreciate your response.  I'm feeling like our processes are valid and that is exactly what I was looking for.

    ------------------------------
    Curtis Bluhm
    Gladwin Machinery & Supply
    Fridley
    ------------------------------

    Academy - Online Interactive Learning from Experts


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