Inventory Costing in Microsoft Dynamics NAV 2013

Microsoft Dynamics NAV® 2013 is the latest release of the well-known and established ERP solution for all kinds of businesses of whatever size. As you would expect, the package offers rich functionality within an easy to use interface.

Accurate costing of stock transactions is essential to managing a business successfully but it is not as easy to do this as you might think.

Not all businesses value their stock in the same way and it is important that the material costs of each sales transaction accurately reflect their costs, which can change long after stock has been sold. This is important not just for accounting purposes but also to be able to gauge the profitability of each transaction. Microsoft Dynamics NAV 2013 does this by:

Offering a number of different costing methods including FIFO, LIFO, Standard cost and costing by specific item serial nos.
Recording of costs when items are received or shipped as opposed to when they are invoiced and paid for.
Posting to accounting ledgers is automated thus reducing the chance of errors being made.
Costs are re-adjusted based on actual invoiced costs.
The costs of sales are retrospectively adjusted if the cost of the purchases that relate to them changes.
Stock can be quickly and easily re-valued if necessary.
A detailed example of how costing in Dynamics NAV 2013 works can be found HERE.

Jesse Lawrence

Jesse is our marketing manager, keeping an eye on the latest news in the market as well as having worked on the GDPR legislation.