We are running NAV 2018, using standard cost and have noticed that when we post a Purchase Credit Memo where the Direct Unit Cost is less than the Standard Cost, NAV is not making the Value Entries for the variance unless the "Applies – To Entry" is used in the Purchase Return/CM Lines. Running Adjust Cost – Item Entries and Post Inventory Cost to G/L does nothing for these entries.
This is leaving the variance in the direct cost account not the variance account where I would expect it to be. Is my expectation to see a variance wrong?
Forcing users to use the applies-to entry by turning on exact cost posting seems like it would prevent this from happening again but gets not fun in a hurry when you need to return a quantity from multiple Item Ledger entries.
The proper way is to use the Copy Document function so to copy the correct invoice information and apply this outbound entry to the correct inbound entry.For now, I will do it the manual way so to demonstrate where the problem is.
Notice the Direct Unit Cost (Excl. VAT) is set to 30 instead of 10. That is because the system takes the Last Direct Cost from the Item Card and the Appl.-to Item Entry field is empty.
I will now delete the lines and use the Copy Document function.
The Direct Unit Cost (Excl. VAT) is set to 10 as expected, and the Appl.-to Item Entry field is filled in with the Purchase entry.
Post it.Have a look at the Item Ledger Entries again; you will see that are not open anymore.
Visit the following for the return Item Ledger Entry: Value Entries and Applied Entries.
Applied Item Entries
In simple words, the return entry has used to correct unit cost and has been closed off because it linked to the correct purchase entry.Hope this helps.Thanks,Steve
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