Specific Costing Method and Serial Number Tracking in Dynamics NAV

Specific Costing Method and Serial Number Tracking in Dynamics NAV
Dynamics NAV allows us to choose between FIFO, LIFO, Specific, Average, or Standard Costing Methods (see the related blog, Which Microsoft Dynamics NAV Costing Method Should Manufacturers Choose?) We have not encountered many companies using the Specific Costing Method, but there seems to be some misunderstanding of how the Specific Costing Method requires Serial Number Tracking and vice versa. The Specific Costing Method is intended for use with high value items and those that are produced or purchased one at a time—for instance, large capital equipment. Each item in inventory will have its own Specific Cost. When we choose the Specific Costing Method, we must also choose to use Serial Number Item Tracking. Specific Costing is intended for use with high value items and items produced one at a time
Figure 1 – Specific Costing is intended for use with high value items and items produced one at a time When we choose the Specific Costing Method, we must also choose to use Serial Number Item Tracking
Figure 2 – When we choose the Specific Costing Method, we must also choose to use Serial Number Item Tracking The confusion arises when we want to use Serial Number Tracking and a Costing Method other than Specific. Some users think that if you want to use Serial Number Tracking, you must use the Specific Costing Method. That is not true. You can use any of the costing methods when you are using Serial Number Tracking, but you must use Serial Number Tracking if you use the Specific Costing method. For more information on this or other Microsoft Dynamics NAV topics, please contact ArcherPoint. Read more "How To" blogs from ArcherPoint for practical advice on using Microsoft Dynamics NAV.

Trending Posts

Stay Informed

Choose Your Preferences
First Name
*required
Last Name
*required
Email
*required
Subscription Options
Your Privacy is Guaranteed