Hi
in a recent project, I am facing a problem, I hope you can help me.
Production is done via subcontracting. About 80% of the cost is the subcontracting part. Other costs are rather small additions of labels and stuff like that.
These are the steps:
1. create a released production order.
2. production order has 2 routing steps. Step 1 is the subcontracting, step 2 is 'finish production'.
3. Run the subcontracting worksheet and generate a purchase order
4. create an inventory putaway from the production order.
....subcontractor does his work
5. Goods arrive, and the warehouse put away is posted, after cheking the goods.
6. Consumption of the labels is posted.
7. Purchase receipt is posted
..... some time passes until the subcontractor makes his invoice
8. Purchase invoice is created and posted.
the problem is that between step 7 and step 8, the cost of the item is incorrect.
If components are not invoiced, NAV uses an expected cost to determine the cost of the produced goods (in the value entries).
For the subcontracting however, there is no expected cost used, meaning the cost of the subcontracting is added only when the purchase invoice is posted (sometimes 2 or 3 months later).
So as long as the purchase invoice is not registered, the cost of the items is incorrect.
They are using lotnumbers, so when selling the product, the margin information is incorrect, because the cost in the item ledger entry is incorrect. In fact, it is specified as the actual cost, becasue the production order is finished, but it doesn't contain the subcontracting cost
The costing method is FIFO, and the workcenter has been marked with specific cost, and there is a cost on the production order routing.