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Purchase Credit Memos and Variances

  • 1.  Purchase Credit Memos and Variances

    SILVER CONTRIBUTOR
    Posted 25 days ago

    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.



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    Mark Buckingham
    Signature Systems Group, LLC
    Flower Mound TX
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  • 2.  RE: Purchase Credit Memos and Variances

    NAVUG ALL STAR
    Posted 21 days ago
    Mark,

    When I think about return policy of a company I will visit the Purchases & Payables Setup and Sales & Receivable Setup and activate the Exact Cost Reversing Mandatory fields. This is to make sure that the exact cost on the Returns are properly posted when returned, but Vendor Returns or Customer Returns.

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    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.

    WRONG:

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    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.

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    I will now delete the lines and use the Copy Document function.

    CORRECT:

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    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.

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    Post it.
    Have a look at the Item Ledger Entries again; you will see that are not open anymore.

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    Visit the following for the return Item Ledger Entry: Value Entries and Applied Entries.

    Value Entries

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    Applied Item Entries

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    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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    Steven Chinsky
    Manager
    Wipfli
    Mansfield MA
    NAVUG/BC Programming Committee Member
    NAVUG All-Star, Granite Award Recipient, MCP, DCMP
    ------------------------------



  • 3.  RE: Purchase Credit Memos and Variances

    NAVUG ALL STAR
    Posted 20 days ago
      |   view attached
    @Steven Chinsky,

    I like to use the Get Posted Document Lines function instead of the copy document.​ You can filter on reversible lines only as well as multiple types of documents. I typically have people use Posted Receipts for Purchase Returns (because there is a good chance the invoice has not been processed) and Posted Invoices for Sales.

    For all transactions that occur pre-BC/NAV, there will be no document to use, but you can still use the item application field to go find the positive adjustment for inventory loads.

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    Amanda Mayer
    NAVUG All Star
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  • 4.  RE: Purchase Credit Memos and Variances

    NAVUG ALL STAR
    Posted 20 days ago
    Amanda,

    Just played more with the process you outlined and really like the flow. I like the way it pulls just lines vs. header/lines.

    Thank you!
    Steve

    ------------------------------
    Steven Chinsky
    Manager
    Wipfli
    Mansfield MA
    NAVUG/BC Programming Committee Member
    NAVUG All-Star, Granite Award Recipient, MCP, DCMP
    ------------------------------



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