What entries are posted and when with these two settings available in Inventory Setup.
They are:
Enabling (or disabling) these settings affect the way NAV posts entries to General Ledger.
In this part of the blog let us see how NAV posts entries to General Ledger without enabling any of these settings.
For the purpose of this blog, let us assume that we have created a Purchase Order with the following values:
Item No.: 1000
Description: Bicycle
Quantity: 1
Unit Cost: 350.60
Direct Unit Cost Excluding Tax: 350.60
When we post the Purchase Order for Receiving, NAV does not post anything to General Ledger; it just creates entries in the Item Ledger Entry (ILE) and the Value Entry(VE) tables.
Values in ILE with both the options unchecked:
“Cost Amount (Expected)”, “Cost Amount (Actual)”, “Purchase Amount (Expected)” and “Purchase Amount (Actual)” are FlowFieldsand fetch their values from the Value Entrytable.
Values in the Value Entry table with both the options unchecked:
Please note that the “Cost Amount (Actual)”, “Cost Posted to G/L”, and “Purchase Amount (Actual)” are zero; this is because we have not posted the Invoice yet
Note that the “Expected Cost Posted to G/L” is zero; this is because we have unchecked the “Expected Cost Posting to G/L” option
Now, let us post the Invoice and see what happens.
Values in ILE with both the options unchecked:
NAV updates the FlowFields in the Item Ledger Entry table with the values in the Value Entry table:
NAV reverses the values in the “Purchase Amount (Expected)” and the “Cost Amount (Expected)” columns and updates values in the “Cost Amount (Actual)” and “Purchase Amount (Actual)” columns.
Since we have posted the Invoice, NAV also updates General Ledger. Following is the excerpt from the General Ledger Entries table:
If you closely observe, NAV has posted only the Sales; it has not posted the Inventory!!! This is because we have switched off the “Automatic Cost Posting.”
So, NAV will not post the Inventory to GL until you do it by running the process-only report “Post Inventory Cost to G/L”.
Once we run that report, NAV posts the Inventory to General Ledger:
and it updates the “Cost Posted to G/L” column of the Value Entry table:
