We often get questions on how Dynamics NAV calculates Average Cost and have created a simple example below to illustrate.
The explanation below comes from a white paper entitled, “Dynamics NAV 5.0 Inventory Costing.”
Tag Archives: Average
How Average Cost is Calculated in Microsoft Dynamics NAV
I often get questions on how Dynamics NAV calculates Average Cost. I have created a simple example below to illustrate.
I copied this explanation from a white paper entitled, “Dynamics NAV 5.0 Inventory Costing.”
Inventory Valuation by Location Report for Average Cost Item shows Zero on Hand but has a Value
I get the question from clients using the Dynamics NAV Average Cost Method, “Why is there a dollar value when there is zero on hand in a location, but when I run the report for all locations combined, it has a correct value?”
Calculating Average Cost in Navision
Average Costing can be handled under two acceptable base methods and be in compliance with Generally Accepted Accounting Principles (GAAP) listed below:
1. Moving Average under a Perpetual Inventory System
2. Weighted Average under a Periodic Inventory System
Simulation of Average Cost Calculation
In the scenario below there is process description for simulating the average cost calculation. This is often used when investigating costing issues related to the average costing method. It has been helpful in verifying the recognized COGS, to describe the average cost calculation or using it as identification that somewhere in time the average cost is unexpected. It helps to identify the area for deeper research of the records demonstrating unexpected values.