Category Archives: costing

Accounting Cost vs. True Cost – Analyzing Costing in Business Central

Overview In Microsoft Dynamics 365 Business Central (formerly Dynamics NAV), when doing costing and profitability analysis, you need to differentiate between a transaction’s True Cost and Accounting Cost. These terms will not appear on any official documentation or manuals, I made them up for a lack of better terms. To better explain the difference betweenRead more

Why You Should Set Automatic Cost Adjustment to Never in Dynamics 365 Business Central

Overview This was one of the topics that came up frequently while working with users at the last NAV/BC User Group Summit at Phoenix. Many people have different opinion to setup their inventory so costing is done properly. Naturally, knowing a few things on how Dynamics 365 Business Central (aka Dynamics NAV) inventory and howRead more

Is Inventory Periods Needed to Control Inventory Posting?

Overview Over the years, I’ve written a lot of articles about inventory and inventory costing. I realize there are some tools that I do not mention that are in the inventory module. This is not because I don’t know about them, it’s because I don’t think companies need them. Everyone is super busy these days,Read more

Prevent Inventory Adjust Cost Entries from Back Dating

Overview Hopefully, by now every company that uses the inventory module in Dynamics 365 Business Central (aka Dynamics NAV) knows that they MUST run the Adjust Cost – Item Entries process. If not, please check out my other articles on the subject on how to properly care for the inventory module in Dynamics 365 BusinessRead more

Why Your Inventory Valuation Does Not Match the Inventory Account on the General Ledger

Overview At the end of every month, we will inevitably get some questions on why their inventory valuation figures does not match the G/L inventory account. We would investigate and find out why and provide solutions on how to fix them. Some of the reasons are pretty common so I’d thought I compile a listRead more

Common Mistake in Updating Standard Cost in Dynamics NAV

Overview Recently, I’ve been contacted by one of our readers on why their inventory cost was wrong. This particular company utilizes standard cost and the inventory cost never matched their inventory G/L account. Learning about how they updated standard cost, it was very apparent what went wrong. It was how the user updated their standardRead more

Abnormal Item Charges

Overview Dynamics NAV is a ERP software that’s built on best business practice. However, that’s not to say that the users of Navision operates on best business practice. This post describes what I would like to call Abnormal Item Charges. Again, as with what I’ve described with Abnormal Posting Date, don’t bother looking it upRead more

Inventory Value to General Ledger Reconcilation in Dynamics NAV

I recently signed up to be a guest columnist on the Microsoft Dynamics NAV community site. I wrote an article with the list of common steps to finding and reconciling the difference between your inventory valuation and the inventory G/L account. The article is posted in the Dynamics NAV Community site hosted by Microsoft. The articleRead more