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    Item Substitutions in Microsoft Dynamics NAV

    There are times in a manufacturing company where substitute items that are not on the Bill of Material are OK to use if the preferred item is not available. Often this substitution has to be approved by an engineer and is usually in the form of a ‘Usage Variance’.

    If substitutions are a common event, it might be useful and time saving for the engineering department to set up ‘Item Substitutions’ ahead of time so that an individual variance doesn’t have to be approved and signed each time.

    To set up a Substitution in Dynamics NAV, go to the Item Card for which a substitute is available.

    Item Substitution entry

    Figure 1 – Item Substitution entry

    Then enter the item number that is OK to be used as a substitute.

    Enter the item number of the item that can be used as a substitute

    Figure 2 – Enter the item number of the item that can be used as a substitute

    Now, go to the component list of a production order and select the substitution that was approved by the engineering department.

    From the component list of production order…

    Figure 3 – From the component list of production order…

    …select the approved substitution

    Figure 4 - …select the approved substitution

    The production order component list now contains the substituted item.

    The production order component list shows the substitution

    Figure 5 – The production order component list shows the substitution

    For more information on this or any other Dynamics NAV costing topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    Using Send-Ahead Quantity in Microsoft Dynamics NAV Routings

    From a production scheduling point of view, it may be advantageous to ‘overlap’ production steps to reduce the elapsed time to produce a lot of goods.

    From the APICS Dictionary

    Send-Ahead is the movement of a portion of a lot of material to a subsequent operation before completion of the current operation for all units of the lot. The purpose of sending material ahead is to reduce the manufacturing lead time.

    Other names for ‘Send-Ahead’ are Split Lot or Overlapped Production.

    Figure showing ‘Send-Ahead Quantity’ in Dyamics NAV

    Figure 1 – Figure showing ‘Send-Ahead Quantity’ in Dyamics NAV

    To illustrate this, I created a Dynamics NAV production order for 10 bicycles using the routing from above. The due date of the production order is 9/14/2014 and the starting date that was calculated by the system is 9/10/2014, 11:39 AM.

    Figure showing production order showing starting and ending dates

    Figure 2 – Figure showing production order showing starting and ending dates

    Now, when I have changed the Send-Ahead quantity on the first three routing steps and refreshed the production order, I get a starting date of 9/13/2014, 10:49 AM, which will result in a 3-day reduction of elapsed time.

    Changing the Send-Ahead Quantity of the first three routing steps…

    Figure 3 – Changing the Send-Ahead Quantity of the first three routing steps…

    …results in a reduction of three days

    Figure 4 - …results in a reduction of three days

    Keep in mind that the total ‘effort hours’ remain the same, but the elapsed time is reduced. The advantage is that there are more operations being performed at the same time, as opposed to doing each operation when the entire lot is completed at each operation.

    For more information on this or any other Dynamics NAV costing topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    A Brief Definition of Time in Microsoft Dynamics NAV Manufacturing

    In order to set up Routings in Dynamics NAV and understand their Cost Accounting effects, one needs to know how time is defined.

    In a Routing there are ‘Value Added Times’ and times just for scheduling purposes. 

    Value Added Times

    Setup Time– The time to set up a machine or to get ready to produce

    Run Time– The time it takes to produce a part in a Work or Machine Center

    Non-Value Added Scheduling Times

    Queue Time– The time a lot (Production Order) typically waits to be worked on in a Work or Machine Center (some would call this ‘Buffer time’).

    Wait Time– The time at the end of a production operation that the item(s) need to wait before being moved to the next operation or to stock.  This might be cooling time, curing time, or paint drying time.

    Move Time– The time that it takes to move the lot (production order) to the next operation’s Work Center.

    Showing the various Routing times in Microsoft Dynamics NAV

    Figure 1 – Showing the various Routing times in Microsoft Dynamics NAV

    When NAV rolls up Standard Cost, it only uses Setup time and Run Time. When time is recorded in the NAV Output Journal, only Setup Time and Run Time are recorded. The other times are used only for scheduling and do not contribute to the product’s cost.

    For more information on this or any other Dynamics NAV costing topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    Purchasing Lead Time in Microsoft Dynamics NAV

    There are actually two Purchasing Lead times in Dynamics NAV.

    If we look at the Replenishment and Planning Tabs of a Dynamics NAV Item Card or SKU Card, we see Lead Time Calculation and Safety Lead Time. The Lead Time Calculation is what most people would call Purchasing Lead Time. The reason it is called Lead Time Calculation is that the user is allowed to enter a Dynamics NAV date calculation—for instance, 1M-1D or 5W or 35D.

    View of Replenishment and Planning Tabs in Microsoft Dynamics NAV

    Figure 1 – View of Replenishment and Planning Tabs showing entries for Lead Time Calculation and Safety Lead Time

    When you think about Purchasing Lead Time, think of it as Purchasing Notification Time. I define it as the amount of time before the product needs in order to be delivered to your company that the Purchasing Agent needs to be alerted. This would include the time the supplier needs to make the product, the time in transit, and the time the Purchasing Agent needs to negotiate the purchase agreement and prepare and deliver the purchase documents. When MRP is run using the Calculate Plan with the Planning Worksheet, the starting date will be Due Date – Safety Lead Time – Lead Time Calculation.

    Safety Lead Time is not really Lead Time at all, but the amount of time before the product is needed for production or distribution that it should be delivered to your company. I sometimes call this Dock Time or perhaps Quality Control Time. For instance, if the product is needed on Monday and it has a 3-day Safety Lead Time, it should be delivered on the previous Tuesday.

    Diagram showing how Safety Lead Time is used in Microsoft Dynamics NAV

    Figure 2 – Diagram showing how Safety Lead Time is used

    For more information on this or any other Dynamics NAV costing topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    Determining Which GL Accounts Purchase Receipts and Invoices will Post to in Microsoft Dynamics NAV

    The other day, the question came up about how to determine which Dynamics NAV General  Ledger Accounts are posted to for a Purchase Receipt and Invoice.

    First, we need to find our way to the Item Ledger Entry for the receipt you want to analyze.

    Item Ledger Entry showing the receipt to be analyzed

    Figure 1 – Item Ledger Entry showing the receipt to be analyzed

    The Dynamics NAV feature ‘Navigate’ will take us to the General Ledger Postings.

    Clicking on the Navigate feature on the Item Ledger Entry window

    Figure 2 – Clicking on the Navigate feature on the Item Ledger Entry window…

    This is the result of the navigation:

    Display the detail of the Item Ledger Entry

    Figure 3 - …will display the detail of the Item. Selecting Show from this screen…

    And if we select ‘Show,’ it will take us to the General Ledger Postings.

    View of the General Ledger Postings

    Figure 4 – …will take the user to General Ledger Postings

    The problem is, this only shows us the postings related to the Purchase Receipt and doesn’t include the postings related to the Purchase Invoice.  To see both, we need to drill down on the ‘Cost Amount (Actual)’ to see the Value Entries Related to this Purchase Receipt.

    Be able to see both the Purchase Receipt and the Purchase Invoice

    Figure 5 – To see both the Purchase Receipt and the Purchase Invoice, drill down on the Cost Amount (Actual)…

    Now we can ‘Navigate’ on the Purchase Invoice Document No. to get to the General Ledger Postings as a result of the Purchase Invoice.

    Navigate on the Purchase Invoice Document Number to get to the General Ledger Postings

    Figure 6 – …which will allow the user to Navigate on the Purchase Invoice Document Number to get to the General Ledger Postings…

    Now, by selecting ‘Show,’ we can see the General Ledger Postings we created when we posted the Purchase Invoice.  If we combine the General Ledger Postings from the receipt and the invoice, we can see the entire results for this Purchase Receipt.

    The General Ledger Postings for the Purchase Invoice can be seen

    Figure 7 – …now, by selecting Show, the General Ledger Postings for the Purchase Invoice can be seen

    For more information on this or any other Dynamics NAV costing topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    When the Unit Cost and Standard Cost Are Not Equal on NAV Inventory Valuation Report

    I got a call the other day from a client who said when they run the Dynamics NAV Inventory Valuation Report that the unit cost on the report is not equal to the Standard Cost of the Item.

    To illustrate, see the example below. The Standard Cost for Item 1000 is 427.499, but when I run the Inventory Valuation Report, the Unit Cost is 423.508.

    Standard Cost shown on Item Card

    Figure 1 – Standard Cost for an item is shown as 427.499…

    ...however, the Unit Cost for the same item is 423.508

    Figure 2 - …however, the Unit Cost for the same item is 423.508

    The probable reason for the mismatch is that someone rolled up the Standard Cost but did not do an Inventory Revaluation to update the existing inventory value

    If we look at the Item Ledger Entries for this item, we can see that, although we are using Standard Cost, we have ‘layers’ in inventory with a different Unit Cost.

    Item Ledger Entries for the item

    Figure 3 – Item Ledger Entries for the item shows inventory values with different Unit Cost, even though it is set to Standard Cost

    If we use the Dynamics NAV Standard Cost Worksheet to roll up the Standard Cost for this item, we see that the new standard is set to 427.499. In addition to that, the system rolled up the standard cost for all of the low level sub-assemblies.

    The Standard Cost Worksheet shows the standard is set at 427.499

    Figure 4 – The Standard Cost Worksheet shows the standard is set at 427.499

    Now, when we ‘implement’ the Standard Cost Changes, the system automatically creates a Revaluation Journal.

    Selecting the “Implement Standard Cost Changes” from the Standard Cost Worksheet…

    Figure 5 – Selecting the “Implement Standard Cost Changes” from the Standard Cost Worksheet…

    …causes the system to automatically create a Revaluation Journal

    Figure 6 - …causes the system to automatically create a Revaluation Journal

    After we have posted the Revaluation Journal, we see that the Inventory Valuation Report Unit Cost reflects the Item Standard Cost of 427.499.

    Now the Inventory Valuation Report Unit Cost reflects the Item Standard Cost

    Figure 7 – Now the Inventory Valuation Report Unit Cost reflects the Item Standard Cost of 427.499

    The likely cause of the mismatch is that the users are rolling up the Item Standard from the Item Function to Roll Up Standard Cost and are neglecting to then run the Revaluation Journal.

    Users must also remember to run the Revaluation Journal when Calculating Standard Cost from the Item Card

    Figure 8 – When Calculating Standard Cost from the Item Card, users must also remember to then run the Revaluation Journal

    Users are advised to use the Standard Cost Worksheet instead of the Item Card for rolling up Standard Costs

    Figure 9 – Rather than rolling up Standard Costs from the Item Card->Calc. Standard Cost, users are advised to use the Standard Cost Worksheet instead

    My advice is to never roll up Standard Costs from the Item Card, but to always use the Standard Cost Worksheet. When the Standard Cost Worksheet is implemented, it will automatically create a Revaluation Journal.

    For more information on this or any other Dynamics NAV costing topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    Setting Up Production Lead Time in Microsoft Dynamics NAV if You’re Not Using Routings

    There are manufacturing companies using Dynamics NAV that want to offset the start time on production orders to accommodate production time even though they are not using Routings.

    To illustrate, I set up a test item called BOB PRODUCED.  Note that the item has a BOM, but not a Routing.

    Setting up an item with a BOM but without a Routing

    Figure 1 – To offset start time on production orders without Routings, start by setting up an item with a BOM but without a Routing

    Notice, also, that when I create a Production Order for the item, the Starting Date and the Ending Date are on the same day.

    The Production Order for the item has Starting and Ending Dates on the same day

    Figure 2 – The Production Order for the item has Starting and Ending Dates on the same day

    To add lead time to a Produced Item, enter the lead time into the Lead Time Calculation field on the item card.

    Add Lead Time into the Lead Time Calculation field on the Item Card

    Figure 3 – Add Lead Time into the Lead Time Calculation field on the Item Card

    Now, when I refresh the Production Order, we can see that the Starting Date is offset to 8/25/14, 20 days before the Ending Date. This sets up your lead time.

    Refreshing the Production Order shows the Starting Time offset by the amount of the Lead Time

    Figure 4 – Refreshing the Production Order shows the Starting Time offset by the amount of the Lead Time

    For more information on this or any other Dynamics NAV costing topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    Some Advice on Setting up the Item Base Unit of Measure in Microsoft Dynamics NAV

    In Dynamics NAV, it is vitally important that you set up the Item Base Unit of Measure correctly because if it is set up incorrectly and you have already processed transactions, you will not be able to change the unit of measure.

    If we look at an Item Card in NAV, we can see that there are three places to enter an Item’s Unit of Measure: 

    • Base Unit of Measure
      • All on-hand information is displayed in the Base Unit of Measure
      • All costing is based on the Base Unit of Measure
    • Purchasing Unit of Measure
    • Sales Unit of Measure

    The Item Card shows three places to enter an Item’s Unit of Measure

    Figure 1 – The Item Card shows three places to enter an Item’s Unit of Measure

    If there is only one Unit of Measure for the Item, you will not run into any problems. However, for instance, if you sell the item in a different Unit of Measure than you stock it, the best thing to do is to set the Base Unit of Measure with the smallest unit that will be stocked.  For example, if you buy the item by the case of 12 but sell it individually, you will want to set the Base Unit of Measure to ‘Each.’  If you set the Base unit of Measure to ‘Case,’ then sell individually, you could end up with fractions of a case in Inventory.

    To illustrate, I set up an item with a Base Unit of Measure of ‘Case’ with an alternate unit of measure of ‘Each’ and a conversion factor of 1/12 = .08333.

    Unit of Measure example showing one unit for a CASE and a fractional unit (1/12) for EACH

    Figure 2 – Unit of Measure example showing one unit for a CASE and a fractional unit (1/12) for EACH

    I posted an Item Journal that put One Case into Inventory.

    One CASE is placed into inventory

    Figure 3 – One CASE is placed into inventory

    I then sold one EACH. We can see that we now have a fractional quantity on hand of .91667 CASE.

    Selling a single item leaves a fractional Quantity on Hand value (11/12)

    Figure 4 – Selling a single item leaves a fractional Quantity on Hand value (11/12)

    While this is not catastrophic, it would be much better to see 11 EACH on hand as opposed to .91667 CASE.

    For more information on this or any other Dynamics NAV costing topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    Using Master Templates in Microsoft Dynamics NAV

    The other day a client asked me if there was a way to copy Item Cards when setting up new items in Dynamics NAV 2013. I replied that I did not think so, but perhaps there is a better way to make it easier and more accurate when creating new Master Records.

    In Dynamics NAV, you can create Master Templates that can be ‘applied’ when creating new Master Records. These Master Records can be Items, Customers, Vendors, and so on.

    In my sample database, there are already Master Templates set up.

    Sample Master Templates in Microsoft Dynamics NAV 2013

    Figure 1 – Sample Master Templates in Microsoft Dynamics NAV 2013

    This is the setup for an Item Master Template:

    Setup for an Item Master Template

    Figure 2 – Setup for an Item Master Template

    You can see that when a user is setting up new Items, for instance, the user only needs to select the type of Item they want to create.

    First, you enter the new Item Number:

    When using Item Master Templates, begin by entering a new Item Number

    Figure 3 – When using Item Master Templates, begin by entering a new Item Number

    Then select ‘Apply Template’:

    Next, select Apply Template

    Figure 4 – Next, select Apply Template

    Then, from the list, select the type of Item you wish to create:

    Select the type of Item you wish to create from the list

    Figure 5 – Select the type of Item you wish to create from the list

    The system then populates the Item Card with the information that was set up in the Master Template:

    Microsoft Dynamics NAV populates the Item Card with the information that was set up in the Master Template

    Figure 6 – Microsoft Dynamics NAV populates the Item Card with the information that was set up in the Master Template

    Then, all that is left to do is to populate the fields with the data that is unique to the item, such as Description, Vendor Item Number, etc.

    For more information on this or any other Dynamics NAV costing topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    Lot-for-Lot versus Reorder Point in Microsoft Dynamics NAV

    When we are talking about Replenishment Planning in either a manufacturing or distribution environment, there are two fundamental replenishment planning methods:

    • Reorder Point (Also known as Min/Max and sometimes incorrectly as Kan Ban)
    • Materials Requirement Planning (MRP)

    The Reorder Point method is typically used in a distribution environment.  The Reorder Point method is ‘reactive’ in that it waits until you are low on inventory before recommending a replenishment order.

    MRP is typically used in a manufacturing environment where there are multiple levels in the Production Bill of Material and the replenishment time to produce finished goods is fairly long.  MRP is ‘proactive’ in that it attempts to predict when you will be low on inventory and recommends a replenishment order to arrive at the date when you will be running out of needed inventory.

    With that, in some scenarios these methods can be used for either purchased or produced items.

    With Min/Max, the system waits until you have reached the ‘Reorder Point’ and then recommends that you order either a Fixed Quantity or enough to get you up to the Maximum Inventory that you have set on the Dynamics NAV Item or SKU card.

    If we look at the Planning Tab of a Dynamics NAV Item Card, we see that we have the option to choose:

    • Fixed Order Quantity
    • Maximum Quantity
    • Order
    • Lot-For-Lot

    For Reorder Point Planning, our choices are Fixed Order Quantity or Maximum Inventory.

    View of the Planning Tab of a Dynamics NAV Item Card

    Figure 1 – View of the Planning Tab of a Dynamics NAV Item Card

    If I select Fixed Order Quantity, the system opens up the fields for Reorder Point and Reorder Quantity.  It is then up to the user to populate the two fields with the Reorder Point and the Reorder Quantity.  These quantities need to be calculated outside of Dynamics NAV and ported back into NAV.

    Choosing Fixed Order Quantity opens fields for Reorder Point and Reorder Quantity

    Figure 2 – Choosing Fixed Order Quantity opens fields for Reorder Point and Reorder Quantity

    Now, when I run the Requisition Worksheet, I get a recommendation to order 100 of the item because the inventory level is below 10.

    Requisition Worksheet gives recommendation to reorder when inventory levels fall below a predefined level

    Figure 3 – Requisition Worksheet gives recommendation to reorder when inventory levels fall below a predefined level

    For MRP planning I set the Reordering Policy to ‘Lot-for-Lot’.  If I set the Reordering Policy to Lot-For-Lot, the system then opens up fields for ‘Lot Accumulation Period’, ‘Rescheduling Period’ and ‘Order Modifiers’.  

    For MRP planning, setting the Reordering Policy to Lot-for-Lot opens different replenishment fields

    Figure 4 – For MRP planning, setting the Reordering Policy to Lot-for-Lot opens different replenishment fields

    The demand for MRP will come from a combination of Sales Orders and a Production Forecast.

    View of Production Forecast

    Figure 5 – View of Production Forecast

    Now, when I calculate a plan from the Dynamics NAV Planning Worksheet, it will recommend reorder quantities and the Delivery due Date.

    View of the Dynamics NAV Planning Worksheet shows recommended reorder quantities and the Delivery due Date

    Figure 6 – View of the Dynamics NAV Planning Worksheet shows recommended reorder quantities and the Delivery due Date

    In addition to recommending the quantities and due date for the produced item, the system will propagate the demand for the lower level components that MRP will subsequently plan for.

    Please refer to my earlier blog on Low Level Codes.

    View of Low Level planning components

    Figure 7 – The system will propagate also show the demand for the lower level components that MRP will subsequently plan for

    For more information on this or any other Dynamics NAV costing topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    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.”

    The explanation of how to calculate Average Cost was explained as follows:

    1. Determines the cost of the item at the beginning of the average cost period.
    2. Adds the sum of the receipt costs that were posted during the average cost period. These include purchases, positive adjustments, outputs, and revaluations.
    3. Subtracts the sum of the costs of outbound transactions that were fixed applied to receipts in the average cost period. These might include purchase returns and negative outputs.
    4. Divides by the total inventory quantity as of the end of the average cost period, not including those inventory decreases that are being valued.

    The program then applies this average cost to the inventory decreases for the item (or item, location, and variant) with posting dates in the average cost period. If there are any inventory increases that were fixed applied to inventory decreases in the period, the program forwards this average cost to these entries as well.

    Date Entry Type Quantity Unit Cost Total Cost
    10/7/2013 Positive Inventory Adjustment 10 10.00 100.00
    10/7/2013 Purchase Receipt 20 15.00 300.00
    10/7/2013 Sales Shipment -15 13.33 200.00
    10/7/2013 Closing Entry 15 13.33 200.00

    For October 7, there was zero on hand at the beginning of the day. The positive inventory adjustment for ten and the purchase receipt (increase) gives a total quantity of 30 and a total cost of 400.00. The average cost of the receipts was 13.33 (400.00 / 30). This cost of 13.33 was applied to the Sales Shipment (decrease) and was the average cost balance at the end of the day.

    Date Entry Type Quantity Unit Cost Total Cost
    10/8/2013 Opening Entry 15 13.33 200.00
    10/8/2013 Purchase Receipt 30 10.00 300.00
    10/8/2013 Sales Shipment -10 11.11 -111.11
    10/8/2013 Closing Entry 35 11.11 388.89

    For October 8, the opening balance of inventory was fifteen at the average cost carried over from the previous day. There was a Purchase Receipt (increase) for thirty at a unit cost of 10.00 and a total cost of 300.00. The total value of the increases was 500.00 for a total quantity of forty-five, giving an average cost of 11.11. The cost of 11.11 was applied to the Sales Shipment (decrease) and was the average cost of the remaining inventory at the end of the day.

    For more information on this or any other Dynamics NAV costing topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    Unexpected Manufacturing WIP Balances in Microsoft Dynamics NAV

    I frequently encounter clients with an unexpected Manufacturing WIP Balance. In some cases, the WIP balance is below zero. In the screen shot below, we can see that the WIP account has a negative balance, which in the real world we know cannot be true.

    WIP account shows a negative balance, reflecting an error

    Figure 1 – WIP account shows a negative balance, reflecting an error

    When we enter transactions in Dynamics NAV to record the consumption of component parts, we get the following G/L entries:

    Dr WIP (Balance Sheet) for the Actual Cost of the Components

    Cr Component Inventory (Balance Sheet) for the Cost of the Components

    When we enter transactions in Dynamics NAV to record Labor and Overhead, we get the following G/L entries:

    Dr WIP (Balance Sheet) for Labor applied at a set rate

    Cr Applied Labor (Income Statement) for Labor applied at a set rate

    Dr WIP (Balance Sheet) for Overhead applied at a set rate

    Cr Applied Labor (Income Statement) for Overhead applied at a set rate

    When we enter transactions into Dynamics NAV to record the Output of Finished Items, we get the following G/L entries:

    Dr Finished Inventory (Balance Sheet) for the Expected Amount (which is the unit cost from the item card)

    Cr WIP (Balance Sheet) for the Expected Amount (which is the unit cost from the item card)

    The problem shows up when the Expected Cost is different than the accumulated WIP Balance created by the Consumption and Labor entries.

    It is vital that the users change the Released Production Order Statuses to ‘Finished’ in a timely manner. The WIP Balances are not ‘trued up’ until the Production Orders are changed to the Finished Status.

    After the ‘True Up’, we end up with the following G/L Entries:

    Dr Finished Inventory (Balance Sheet) for the difference between Expected and Actual Cost

    Cr WIP (Balance Sheet) for the difference between Expected and Actual Cost

    Changing the Released Production Order Statuses to ‘Finished’ is important to avoid negative WIP values

    Figure 2 – Changing the Released Production Order Statuses to ‘Finished’ is important to avoid negative WIP values

    For more information on this or any other Dynamics NAV costing topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    How to Block a Location in Microsoft Dynamics NAV

    I have seen some questions on the various Dynamics NAV Forums about how to ‘Block’ a location in Dynamics NAV. Unfortunately there isn’t a current method to do so, so I offer this work-around. It is not the perfect solution, but it works. NOTE: This work-around is to not create (or remove) the Inventory Posting Setup for this location.

    I created a location called ‘TEST.’

    Create a new Location

    Figure 1 – Create a new Location

    I created a Purchase Order and then tried to receive it into the TEST Location and got the following error:

    Error displayed when trying to receive a Purchase Order into the new Location

    Figure 2 – Error displayed when trying to receive a Purchase Order into the new Location

    Make sure to run Adjust Cost/Post Cost before you delete the posting setup.

    For more information on this or any other Dynamics NAV costing topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    New Feature in Microsoft Dynamics NAV 2013: Item Availability by Event

    There is a nice new feature in Dynamics NAV 2013: ‘Item Availability by Event’.

    From an Item Card or the Item List you can select ‘Item Availability by Event’.

    Select Item Availability by Event from the Item Card or Item List

    Figure 1 – Select Item Availability by Event from the Item Card or Item List

    When the form opens, you see a collapsed view of the Item Availability in chronological sequence.

    View of the Item Availability in chronological sequence

    Figure 2 – View of the Item Availability in chronological sequence

    At this point you can elect to ‘Expand All’ to see the detail, again in chronological sequence.

    Choose Expand All to view the item details in chronological sequence

    Figure 3 – Choose Expand All to view the item details in chronological sequence

    And then at this point you can elect to include lines from the Dynamics NAV Planning Worksheet.

    From this screen, you can include lines from the Dynamics NAV Planning Worksheet

    Figure 4 – From this screen, you can include lines from the Dynamics NAV Planning Worksheet

    I see this feature as an invaluable tool for planners.

    If you would like more information on this topic or another Dynamics NAV topic, please contact ArcherPoint.

    For more information on this or any other Dynamics NAV costing topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    Item Category and Product Group Code in Microsoft Dynamics NAV

    I saw a question the other day on a Dynamics NAV Forum asking, “What is the Product Group Code on the Item Card used for?”

    If we look at an Item Card in Dynamics NAV, we see the field for Product Group Code and, above it, a field for Item Category Code.

    Item Card, showing the Item Category Code and Product Group Code

    Figure 1 – Item Card, showing the Item Category Code and Product Group Code

    Before we can explain how the Product Group Code is used, we need to explain how the Item Category Code is used.

    The Item Category Code on the item is used to classify the item for filtering and reporting. It is also used to set defaults for Costing Method, General Product Posting Group, and Inventory Posting Group.

    When a user enters a new item, and enters an Item Category Code, the system will insert the defaults.

    View of Item Category Code options

    Figure 2 – View of Item Category Code options

    The Product Group Code is a subset of the Item Category Code and is also used for classifying items for filtering and reporting.

    View of Product Group Code options

    Figure 3 – View of Product Group Code options

    Now if someone asks you where you set up the Warehouse Class Code for an item, it is set up in the Product Group Code.

    For more information on this or any other Dynamics NAV costing topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    Things to Consider when Setting UP Base Unit of Measure for Item in Microsoft Dynamics NAV

    Microsoft Dynamics NAV is very flexible when it comes to setting up Units of Measure for items. But careful consideration should be used before setting up the Base Unit of Measure. Once the Base Unit of Measure is established and there are transactions recorded for the item, the Base Unit of Measure cannot be changed.

    When looking at the Quantity on Hand, we see that it is displayed in the Base Unit of Measure. Also, all costing is done in the Base Unit of Measure.

    If we look at a Dynamics NAV Item Card, we can see that there three places to enter Units of Measure: Base Unit of Measure, Sales Unit of Measure, and Purchase Unit of Measure. The Sales and Purchase Units of Measure are “defaults” when entering Sales and Purchase Orders and can be changed on the item card.

    There are three places to enter Units of Measure on the Dynamics NAV Item Card: Base Unit of Measure, Sales Unit of Measure, and Purchase Unit of Measure

    Figure 1 – There are three places to enter Units of Measure on the Dynamics NAV Item Card: Base Unit of Measure, Sales Unit of Measure, and Purchase Unit of Measure

    When we setting up the Base Unit of Measure, we get drop downs to the Unit of Measure Table. The Units of Measure can be whatever you want them to be and there is no list of standard units of measure in Dynamics NAV. You can create units of measure to meet your needs.

    Drop downs to the Unit of Measure Table allow the user to define the Units of Measure as needed

    Figure 2 - Drop downs to the Unit of Measure Table allow the user to define the Units of Measure as needed

    Once the Base Unit of Measure is set up, you can set up alternate units of measure with a conversion factor (Qty. per Unit of Measure). This factor is always related to the Base Unit of Measure whose Qty. per Unit of Measure is always 1.

    Configure alternate units of measure with a conversion factor related to the Base Unit of Measure with Qty. per Unit of Measure of 1

    Figure 3 – Configure alternate units of measure with a conversion factor related to the Base Unit of Measure with Qty. per Unit of Measure of 1

    To avoid having decimal quantities of items on hand, always set the Base Unit of Measure to be the smallest unit that the item can be represented. In my example above, EACH would be the smallest and would be set to the Base Unit of Measure.

    For more information on this or any other Dynamics NAV costing topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    The Inventory to General Ledger Reconciliation Report in Microsoft Dynamics NAV

    The Inventory to G/L reconciliation effort in some companies can be challenging.  The Inventory to G/L Reconciliation Report in Dynamics NAV makes the effort quite easy (or should I say a lot less difficult).

    The Report runs through the Dynamics NAV Value Entry Table to calculate the inventory value and to calculate the amounts of Received Not Invoiced and Shipped Not Invoiced.  The report also determines if the amounts in the Value Entry Table have been posted to the General Ledger.

    If we look at the sample report below we find the following columns and totals:

    • Inventory Valuation
      • This is the Total Value of the Inventory
        • Excludes Production WIP
        • Includes Invoiced Inventory
        • Includes Received but not Invoiced Inventory
      • This Amount should tie to the Inventory Account plus the Interim Inventory Account
    • Received Not Invoiced
      • This is the Value to the Inventory that has been Received but not invoiced
        • This can include Purchased Items
        • This can include Production Output on Production Orders that have not been ‘Finished’
      • This Amount should tie to the Interim Inventory Account
      • This Amount should also tie to the Received but not invoiced A/P Accrual Account
    • Shipped Not Invoiced
      • This is the Value of the Inventory that has been shipped but not Invoiced
      • This should tie to the Interim COGS Account
    • Total Expected Cost
      • This is the Sum of Received not Invoiced and Shipped not invoiced
    • Received Not Invoiced Posted to G/L
    • Shipped Not Invoice Posted to G/L
    • Expected Cost Posted to G/L
    • Expected Cost to be Posted
      • If there is an amount here, then you need to run the batch job ‘Post Inventory to G/L’
    • Pending Adjustment
    • Invoiced Value
    • Invoiced Value Posted to G/L
    • Invoiced Value to be Posted
      • If there is an amount here, then you need to run the batch job ‘Post Inventory to G/L’

    Example Inventory to G/L Reconciliation Report in Dynamics NAV

    Figure 1 – Example Inventory to G/L Reconciliation Report in Dynamics NAV

    For more information on this or any other Dynamics NAV topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    When Purchases and Direct Cost Applied Accounts Don’t Net to Zero in Microsoft Dynamics NAV

    In an earlier blog, Purchases and Direct Cost Applied Accounts in Microsoft Dynamics NAV, I explained that these two account balances should always net to zero.

    I received a call from a client saying that, in their system, the accounts did not net to zero and wondered why.

    In another of my Blogs, Exact Cost Reversing in Microsoft Dynamics NAV 2013, I explained the how the ‘Exact Cost Reversing’ feature worked.

    The likely cause of Purchases and Direct Cost Applied Accounts not netting to zero is that there have been Purchase Returns that have been made at a different cost than the original purchase.

    So, to prevent that non-netting to zero for these accounts, select ‘Exact Cost Reversing’ in the Purchases and Payables Setup.

    For more information on this or any other Dynamics NAV topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    Circular Reference in Microsoft Dynamics NAV Production Bill of Materials

    A client called the other day and said that they were getting an error, “Max Levels in BOM Structure on 50 is too high”, when trying to ‘Certify a Dynamics NAV Production BOM’.

    Figure 1 - Error displayed when certifying a production BOM

    Figure 1 – Error displayed when certifying a production BOM

    This is caused by what is known as a circular reference or an item used on itself. When running MRP, the system will be caught in a loop if there is a requirement for Item 1000 that is supplied by Item 1000.

    To prevent a circular reference, the certification process checks to see if there is a circular reference and won’t allow the BOM to be Certified if such a reference exists. In this case the problem is easy to see and fix.

    Figure 2 – Identifying a circular reference in the BOM

    Figure 2 – Identifying a circular reference in the BOM

    It is a bit more difficult if the circular reference is caused by the item being entered on a lower level subassembly. In this case, I entered Item 1000 on the 1100 Production BOM.

    Figure 3 – Circular reference caused when an item is entered in a lower level subassembly

    Figure 3 – Circular reference caused when an item is entered in a lower level subassembly

    For more information on this or any other Dynamics NAV topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    Understanding the “Order” Reordering Policy in Microsoft Dynamics NAV

    We are given the following choices for Item Reordering Policy in Dynamics NAV. The choice affects how the Planning Worksheet (MRP) plans for replenishment of the item.

    • Blank
    • Fixed Order Quantity
    • Maximum Quantity
    • Order
    • Lot-for-Lot

    List of choices defining how the Planning Worksheet (MRP) plans for replenishment of an item

    Figure 1 – List of choices defining how the Planning Worksheet (MRP) plans for replenishment of an item

    If we choose ‘Order’, the system will plan one replenishment order for each of the Sales Order Demands in the system for that Item.

    If we look at the Dynamics NAV Help for the Reordering Policy Order:

    Generates an order for each requirement and does not use the planning period. An automatic reservation between the requirement and the corresponding replenishment order proposal is created.

    You need to be fully aware that when using the Order Reordering Policy, the Planning Worksheet doesn’t take into consideration any existing inventory. This means that even though you have enough inventory to cover the sales demand, the system will recommend ordering more.

    My advice is to be very careful and fully understand how the Reordering Policy ‘Order’ works before you select it.

    For more information on this or any other Dynamics NAV topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    Negative Consumption to Account for By-Product Production in Microsoft Dynamics NAV

    It is quite common in Process Manufacturing for a By-Product to be produced at the same time the primary product is produced.

    A good way to handle that in Dynamics NAV is to set up an item for the By-Product and give it a costing method of Standard. Set the Standard Cost of the item at its value.

    Set up an item for the By-Product and give it a costing method of Standard

    Figure 1 – Set up an item for the By-Product and give it a costing method of Standard. Set the Standard Cost of the item at its value.

    Then put the item on the Prime item’s Bill-of Material with a negative quantity.

    Now when I create a Production Order and look at the component list, I can see that my By-Product is listed with a quantity of negative one.

    Put the item on the Prime item’s Bill-of Material with a negative quantity

    Figure 2 – Put the item on the Prime item’s Bill-of Material with a negative quantity

    In the Production Journal, I can change the quantity to the actual amount of By-Product Produced.

    Change the quantity to the actual amount of By-Product produced in the Production Journal

    Figure 3 – Changing the quantity of the amount of By-Product produced in the Production Journal

    When I look at the item card information for the By-Product, I see that the By-Product has been added to stock.

    Read about the advantages of Microsoft Dynamics NAV for manufacturing.

    For more information on this or any other Dynamics NAV topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    Why do all new Microsoft Dynamics NAV Production Orders have an Ending Date of 12/31/XX?

    Around the middle of January every year, I can count on getting questions on why all of the new Dynamics NAV Production Orders that are created have an Ending date of 12/31/XX.

    The answer is quite straightforward: The Work/Machine Center Calendars need to be calculated for the upcoming year.

    Remember to update the Work/Machine Center Calendars for the upcoming year

    Figure 1 – Remember to update the Work/Machine Center Calendars for the upcoming year

    For more information on this or any other Dynamics NAV topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    Avoid a Common Mistake when Posting a Positive Adjustment in Microsoft Dynamics NAV

    When posting a positive adjustment in Microsoft Dynamics NAV, be careful to select Entry Type ‘Positive Adjustment,’ not ‘Purchase’

    When you want to post a Positive Inventory Adjustment in Dynamics NAV, you use the Item Journal.

    When I am trying to reconcile the Purchases Account, I find that users are not careful to pick the Entry Type of ‘Positive Adjustment’ and instead pick ‘Purchases.’ This is not hard to do as they both begin with ‘P’ and the Purchase option shows up first.

    See my earlier blog on Purchases and Direct Cost Applied Accounts in Microsoft Dynamics NAV.

    Screenshot of the pull-down menu with Entry Types. Notice that “Purchase” is the first option.

    Figure 1 – A screenshot of the pull-down menu with Entry Types. Notice that “Purchase” is the first option.

    I set up an example where I am attempting to post two positive adjustments for the same item number. I selected Entry Type Purchase on one line and Entry Type Positive Adjustment on another line.

    Screenshot showing a posting going to a Purchase Account rather than a Positive Adjustment

    Figure 2 – A screenshot showing a posting going to a Purchase Account rather than a Positive Adjustment

    Even though in the real world my intent probably was to do two Positive Adjustments, I can see that the General Ledger posting went to two different account numbers.

    Screenshot showing a reconciliation issue due to the previous error posting to the Purchases Account

    Figure 3 – A screenshot showing a reconciliation issue due to the previous error posting to the Purchases Account

    If you are having trouble reconciling the Purchases Account, this might be the cause. If it happens frequently, then I would suggest you ask your NAV Partner to remove the ‘Purchase’ Option from the Item Journal.

    For more information on this or any other Dynamics NAV topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    Saving a Microsoft Dynamics NAV Report in HTML and Opening in Excel

    I know that most of you would like to be able to save a Dynamics NAV report in HTML and then open it in Excel.  A client of mine showed me this trick to make it work.

    First view the report in ‘Print/Preview’ mode:

    Screenshot of a Microsoft Dynamics NAV report in “Print/Preview” mode

    Figure 1: A screenshot of a Microsoft Dynamics NAV report in “Print/Preview” mode

    Saving the report as an HTML file

    Figure 2: Saving the report as an HTML file

    Report saved as an HTML file

    Figure 3: Report saved as an HTML file

    Then open the HTML file with Excel.

    Opening the report HTML file

    Figure 4: Opening the report HTML file

    When it is opened in Excel, the report isn’t very useful.

    Opening the HTML report in Excel - it isn't very useful at this point

    Figure 5: Opening the HTML report in Excel - it isn't very useful at this point

    Now save the Excel file again as .CSV file.

    Saving the HTML file from Excel as a .CSV file

    Figure 6: Saving the HTML file from Excel as a .CSV file

    Then open the .CSV file with Excel, and it is ready to use.

    Opening the .CSV file in Excel

    Figure 7: Opening the .CSV file in Excel

    The new .CSV file with the report in Excel, ready to use

    Figure 8: The new .CSV file with the report in Excel, ready to use

    You can then sort to get column and report headings together and delete them.

    For more information on this or any other Dynamics NAV topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.

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    PPV is not reversed when issuing a Purchase Return Credit Memo in Dynamics NAV

    I received a question the other day from a client who said that they received a ‘Standard Cost’ item, and when invoiced, it created Purchase Price Variance. The item was later returned and a Purchase Credit Memo was issued and posted, but the PPV was not reversed.

    I have set up the following example to illustrate:

    Screenshot showing an example of a standard cost item of $2.00

    Figure 1 – Screenshot showing an example of a standard cost item of $2.00

    I created and posted a purchase order with the cost of $3.00. This resulted in a Purchase Price Variance of $1.00:

    Screenshot of a posted purchase order with the cost of $3.00, resulting in a Purchase Price Variance of $1.00

    Figure 2 – Screenshot of a posted purchase order with the cost of $3.00, resulting in a Purchase Price Variance of $1.00

    I then created and posted a Purchase Credit Memo, which created the following General Ledger entries:

    Screenshot of General Ledger entries created after posting a Purchase Credit Memo

    Figure 3 – Screenshot of General Ledger entries created after posting a Purchase Credit Memo

    You can see that the Purchase Price Variance has not been reversed and that it has left the Purchases Account and Direct Cost Applied Accounts with a different balance.

    Please see my previous Blog on Exact Cost Reversing.

    I again created a posted a Purchase Order to get the same Purchase Price Variance of $1.00.

    Screenshot of a posted a Purchase Order, resulting in the same Purchase Price Variance of $1.00

    Figure 4 – Screenshot of a posted a Purchase Order, resulting in the same Purchase Price Variance of $1.00

    To reverse the Purchase Price Variance in a Purchase Credit Memo, you must select the ‘Applies to Item Ledger Entry’ that created the original Purchase Price Variance.

    Select the ‘Applies to Item Ledger Entry’ to reverse the Purchase Price Variance in a Purchase Credit Memo

    Figure 5 – Select the ‘Applies to Item Ledger Entry’ to reverse the Purchase Price Variance in a Purchase Credit Memo

    Now when the Credit Memo is posted, the Purchase Price Variance is reversed.

    Screenshot showing that the PPV is reversed when the Credit Memo is posted

    Figure 6 – Screenshot showing that the PPV is reversed when the Credit Memo is posted

    For more information on this or any other Dynamics NAV topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    Reversing the Output of a Dynamics NAV Released Production Order

    I am asked from time to time how to reverse the output of a Dynamics NAV-released Production Order. The need to do this probably was caused by a mistake made when posting the original output.

    To illustrate, I created a Dynamics NAV-released Production Order:

    Screenshot of a NAV-released Production Order

    Figure 1 – Screenshot of a NAV-released Production Order

    Then, using the Dynamics NAV Production Journal or Output Journal, I posted the output of a quantity of 1 to Inventory:

    Screenshot showing a quantity of 1 posted to Inventory

    Figure 2 – Screenshot showing a quantity of 1 posted to Inventory

    To reverse the output, I use the Dynamics NAV Output Journal.

    I enter the Released Production Order number, the Item Number, the Last Operation Number in the Routing, and the quantity as a negative number:

    Screenshot reversing the output using the Output Journal

    Figure 3 – Screenshot reversing the output using the Output Journal

    Then I must select the ‘Applies to Entry’ that was created when I posted the original output:

    Screenshot showing that ‘Applies to Entry’ was selected after being created when the original output was posted

    Figure 4 – Screenshot showing that ‘Applies to Entry’ was selected after being created when the original output was posted

    After posting the Output Journal and looking at the Item Ledger Entries for this Dynamics NAV Released Production Order, I see that the original output has been reversed.

    Screenshot showing that the original output has been reversed in the Item Ledger Entries

    Figure 5 – Screenshot showing that the original output has been reversed in the Item Ledger Entries

    For more information on this or any other Dynamics NAV topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    Tooling Amortization in Microsoft Dynamics NAV

    Manufacturing companies will often build or purchase production tooling.  In most cases the manufacturing company would like to amortize the cost of the tooling by adding the cost to the items produced.

    There is no direct way to do this in Dynamics NAV, but I have accomplished this using Dynamics NAV Item Numbers and Bills of Material.

    The scenario:

    The manufacturing company in this scenario purchased tooling for 10,000 and would like to add $4.00 to the cost of production for the item(s) produced using the tooling.

    I created an item number for TOOLING with a Standard Cost of $2.00.

    Screenshot of an Item Number created for Tooling at a Standard Cost of $2.00

    Figure 1: Screenshot of an Item Number created for Tooling at a Standard Cost of $2.00.

    The costing method is Standard and uses the newly created Inventory Posting Group of ‘TOOLING’ and the newly created General Product Posting Group of ‘TOOLING’.

    Now I set up the Inventory Posting Group and General Posting Setup with the Inventory Account equal to ‘Tooling Amortization’ and the Inventory Adjustment Account also equal to ‘Tooling Amortization’.

    Screenshots of an Inventory Posting Group and General Posting Setup

    Figure 2: Screenshots of an Inventory Posting Group and General Posting Setup with the Inventory Account equal to ‘Tooling Amortization’ and the Inventory Adjustment Account equal to ‘Tooling Amortization’.

    Now I do a Positive Inventory Adjustment to add 10,000 of the TOOLING item to stock.

    Screenshot of a Positive Inventory Adjustment with 10,000 of the TOOLING item added to stock

    Figure 3: Screenshot of a Positive Inventory Adjustment with 10,000 of the TOOLING item added to stock.

    The net General Ledger effect of this transaction is 0.00 because the Inventory Account and the Inventory Adjustment are the same Account.

    I add the item to the Production BOM of the produced item.

    Screenshot of the item added to the Production BOM of the produced item

    Figure 4: Screenshot of the item added to the Production BOM of the produced item.

    Now when the TOOLING item is consumed in the production process, the Debit goes to WIP Inventory and the Credit goes to Tooling Amortization.

    Screenshot showing the Debit in WIP Inventory

    Figure 5: Screenshot showing the Debit in WIP Inventory.

    When the total quantity of TOOLING is consumed, then the user will need to remove the TOOLING item from the Production Bill of Material.

    For more information on this or any other Dynamics NAV topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    Connecting GL Entries to Value Entries in Microsoft Dynamics NAV

    When trying to figure out what caused a posting to the Dynamics NAV General Ledger, there is a handy tool in Dynamics NAV you can use.

    If you are in the Dynamics NAV General Ledger Entries and want to know what Value Entry/Item Ledger Entry caused the posting, you could ‘Navigate’ or use the available shortcut directly to the Value entry.

    Screenshot showing the ‘Value Entries’ option on the General Ledger Entries screen

    Figure 1: Screenshot showing the ‘Value Entries’ option on the General Ledger Entries screen.

    When you select ‘Value Entries’, the system takes you to the Value Entry that created the General Ledger Posting you have selected.

    Screenshot showing the Value Entries displayed after selecting ‘Value Entries’ on the General Ledger screen

    Figure 2: Screenshot showing the Value Entries displayed after selecting ‘Value Entries’ on the General Ledger screen.

    Now, if you would like to see the Associated Item Ledger Entry, select ‘Advanced Look Up’ from the Item Ledger Entry No., and the system will take you to the Associated Entry.

    Screenshot showing an Item Ledger Entry Number on the Value Entries screen

    Figure 3: Screenshot showing an Item Ledger Entry Number on the Value Entries screen.

    Screenshot showing the Associated Entries when you select the Item Ledger Entry from the Valued Entries screen

    Figure 4: Screenshot showing the Associated Entries when you select the Item Ledger Entry from the Valued Entries screen.

    For more information on this or any other Dynamics NAV topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.


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    Using search engines to find Information about Microsoft Dynamics NAV

    Lately, when I am trying to find information about Microsoft Dynamics NAV features, I usually go to my favorite search engine. In this case, I entered ‘Dynamics NAV Lot Size,’ and these are some of the results:

    Search results for 'Dynamics NAV Lot Size'

    Not surprisingly, in addition to others, I found a couple of references to Blogs that I have published.

    For more information on this or any other Dynamics NAV topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.

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    General Ledger Postings for Microsoft Dynamics NAV Subcontracting

    In an earlier blog, I explained the setup for Microsoft Dynamics NAV Subcontracting, and now I will explain the General Ledger Postings for a Sub Contract Production Order.

    Quick Start Guide for Setting up Microsoft Dynamics NAV Subcontracting

    I have set up a Work Center called SUBCONTRACT that points to the SUBCONT General Product Posting Group.

    A screenshot showing a Work Center called SUBCONTRACT, with a General Posting Group called SUBCONT

    Figure 1: A screenshot showing a Work Center called SUBCONTRACT, with a General Posting Group called SUBCONT.

    Then, in the General Posting Setup, I set the Purch. Account to 53160 (Sub Cont Purchases) and the Direct Cost Applied Account to 53165 (SC Purchases to WIP).

    I purposefully used different accounts from the usual Purchases and Direct Cost Applied Accounts so I could track subcontract purchases separately in the General Ledger.

    A screenshot showing a general posting setup with a Purchase Account of 53160 and a Direct Cost Applied Account of 53165

    Figure 2: A screenshot showing a general posting setup with a Purchase Account of 53160 and a Direct Cost Applied Account of 53165.

    I then went through the process to create a Released Production Order and a Subcontract Purchase Order.

    When I Received the Subcontract Purchase Order, the system did not create any General Ledger Entries, but when I Invoiced the Purchase Receipt, the system created the following General Ledger Entries:

    Screenshots showing General Ledger Entries reflecting the invoiced Purchase Receipt

    Figure 3: Screenshots showing General Ledger Entries reflecting the invoiced Purchase Receipt.

    For more information on this or any other Dynamics NAV topic, please contact ArcherPoint.

    Read more blogs by Bob Bergman for practical advice on using Microsoft Dynamics NAV.