If you want your sales and purchase invoices are rounded automatically, you will have to activate the invoice rounding function.
To activate the invoice rounding function
You can activate invoice rounding separately for sales and purchase invoices.
To use the automatic invoice rounding function, you must set up rounding rules.
To set up rounding rules for foreign currency
To use the automatic invoice rounding function, you will be required to set up rounding rules.
To set up rounding rules for local currency
You can take help of technical team to add/display fields not visible on the page. These fields are available in Table. For more details about fields you can use F1 help.
To use the automatic invoice rounding function, you will be required to set up the general ledger account or accounts in which the rounding differences will be posted. Before you can do this, you will be required to set up VAT product posting groups.
To set up general ledger accounts for invoice rounding differences
Now you need to assign the invoice rounding account to posting groups in the Customer Posting Groups window and the Vendor Posting Groups window.
Cost components are different types of costs that make up the value of an inventory increase or decrease.
The below table shows the different cost components and any subordinate cost components that they consist of.
| Cost component | Subordinate cost component | Description |
| Direct cost | Unit cost (direct purchase price) | Cost that can be traced to a cost object. |
| Freight cost (item charge) | ||
| Insurance cost (item charge) | ||
| Indirect cost | Cost that cannot be traced to a cost object. | |
| Variance | Purchase variance | The difference between actual and standard costs, which is only posted for items using the Standard costing method. |
| Material variance | ||
| Capacity variance | ||
| Subcontracted variance | ||
| Capacity overhead variance | ||
| Manufacturing overhead variance | ||
| Revaluation | A depreciation or appreciation of the current inventory value. | |
| Rounding | Residuals caused by the way in which valuation of inventory decreases are calculated. |
Freight and insurance costs are item charges that can be added to an item’s cost at any time. When you run the Adjust Cost – Item Entries batch job, the value of any related inventory decreases are updated accordingly.
Inventory valuation is the determination of the cost that is assigned to an inventory item, as expressed by the following equation.
Ending inventory = beginning inventory + net purchases – cost of goods sold
The calculation of inventory valuation uses the Cost Amount (Actual) field of the value entries for the item.
The entries are classified according to the entry type that corresponds to the cost components, direct cost, indirect cost, variance, revaluation, and rounding.
Entries are applied against each other, either by the fixed application, or according to the general cost-flow assumption defined by the costing method.
One entry of inventory decrease can be applied to more than one increase entry with different posting dates and possibly different acquisition costs.
Therefore, calculation of the inventory value for a given date is based on summing up positive and negative value entries.
Inventory Valuation report
To calculate the inventory value in the Inventory Valuation report, the report begins by calculating the value of the item’s inventory at a given starting date.
It then adds the value of inventory increases and subtracts the value of inventory decreases up to a given ending date.
The end result is the inventory value on the ending date.
The report calculates these values by summing the values in the Cost Amount (Actual) field in the value entries, using the posting dates as filters.
The printed report always shows actual amounts, that is, the cost of entries that have been posted as invoiced.
The report will also print the expected cost of entries that have posted as received or shipped, if you select the Include Expected Cost field on the Options FastTab.
Values in the Inventory Valuation report is reconciled with the Inventory account in the general ledger, meaning the value entries in question have been posted to the general ledger.
Amounts in the Value columns of the report are based on the posting date of transactions for an item.
Inventory Valuation – WIP report
A manufacturing company needs to determine the value of three types of inventory:
The value of WIP inventory is determined by the following equation.
Ending WIP inventory = Beginning WIP inventory + manufacturing costs – cost of goods manufactured
As for purchased inventory, the value entries provide the basis of the inventory valuation. The calculation is made using the values in the Cost Amount (Actual) field of the item and capacity value entries associated with a production order.
The purpose of WIP inventory valuation is to determine the value of the items whose manufacturing has not yet been completed on a given date.
Therefore the WIP inventory value is based on the value entries related to the consumption and capacity ledger entries.
Consumption ledger entries must be completely invoiced at the date of the valuation.
Therefore, the Inventory Valuation – WIP report shows the costs representing the WIP inventory value in two categories: consumption and capacity.
To reconcile inventory and capacity ledger entries with the general ledger, the related value entries are posted to different accounts in the general ledger.
From the Inventory Ledger
The below table shows the relationship between different types of inventory value entries and the accounts and balancing accounts in the general ledger.
| Value entry | General ledger accounts | |||||
| Item ledger entry type | Value entry type | Variance type | Expected cost | Account | Balancing account | |
| Purchase | Direct Cost | Yes | Inventory (Interim) | Invt. Accrual Acc. (Interim) | ||
| Direct Cost | No | Inventory | Direct Cost Applied | |||
| Indirect Cost | No | Inventory | Overhead Applied | |||
| Variance | Purchase | No | Inventory | Purchase Variance | ||
| Revaluation | No | Inventory | Inventory Adjmt. | |||
| Rounding | No | Inventory | Inventory Adjmt. | |||
| Sale | Direct Cost | Yes | Inventory (Interim) | COGS (Interim) | ||
| Direct Cost | No | Inventory | COGS | |||
| Revaluation | No | Inventory | Inventory Adjmt. | |||
| Rounding | No | Inventory | Inventory Adjmt. | |||
| Positive Adjmt.,Negative Adjmt., Transfer | Direct Cost | No | Inventory | Inventory Adjmt. | ||
| Revaluation | No | Inventory | Inventory Adjmt. | |||
| Rounding | No | Inventory | Inventory Adjmt. | |||
| (Production) Consumption | Direct Cost | No | Inventory | WIP | ||
| Revaluation | No | Inventory | Inventory Adjmt. | |||
| Rounding | No | Inventory | Inventory Adjmt. | |||
| Assembly Consumption | Direct Cost | No | Inventory | Inventory Adjmt. | ||
| Direct Cost | No | Direct Cost Applied | Inventory Adjmt. | |||
| Indirect Cost | No | Overhead Applied | Inventory Adjmt. | |||
| (Production) Output | Direct Cost | Yes | Inventory (Interim) | WIP | ||
| Direct Cost | No | Inventory | WIP | |||
| Indirect Cost | No | Inventory | Overhead Applied | |||
| Variance | Material | No | Inventory | Material Variance | ||
| Variance | Capacity | No | Inventory | Capacity Variance | ||
| Variance | Subcontracted | No | Inventory | Subcontracted Variance | ||
| Variance | Capacity Overhead | No | Inventory | Cap. Overhead Variance | ||
| Variance | Manufacturing Overhead | No | Inventory | Mfg. Overhead Variance | ||
| Revaluation | No | Inventory | Inventory Adjmt. | |||
| Rounding | No | Inventory | Inventory Adjmt. | |||
| Assembly Output | Direct Cost | No | Inventory | Inventory Adjmt. | ||
| Revaluation | No | Inventory | Inventory Adjmt. | |||
| Indirect Cost | No | Inventory | Overhead Applied | |||
| Variance | Material | No | Inventory | Material Variance | ||
| Variance | Capacity | No | Inventory | Capacity Variance | ||
| Variance | Capacity Overhead | No | Inventory | Cap. Overhead Variance | ||
| Variance | Manufacturing Overhead | No | Inventory | Mfg. Overhead Variance | ||
| Rounding | No | Inventory | Inventory Adjmt. | |||
From the Capacity Ledger
The below table shows the relationship between different types of capacity value entries and the accounts and balancing accounts in the general ledger. Capacity ledger entries represent labor time consumed in assembly or production work.
| Value entry | General ledger accounts | |||
| Work type | Capacity ledger entry type | Value entry type | Account | Balancing account |
| Assembly | Resource | Direct Cost | Direct Cost Applied | Inventory Adjmt. |
| Assembly | Resource | Indirect Cost | Overhead Applied | Inventory Adjmt. |
| Production | Machine Center/Work Center | Direct Cost | WIP Account | Direct Cost Applied |
| Production | Machine Center/Work Center | Indirect Cost | WIP Account | Overhead Applied |
Assembly Costs are Always Actual
As shown in the table above, assembly postings are not represented in interim accounts. This is because the concept of work in process (WIP) does not apply in assembly output posting, unlike in production output posting. Assembly costs are only posted as actual cost, never as expected cost.
Calculating the Amount to Post to the General Ledger
The following fields in the Value Entry table are used to calculate the expected cost amount that is posted to the general ledger:
The following table shows how the amounts to post to the general ledger are calculated for the two different cost types.
| Cost type | Calculation |
| Actual Cost | Cost Amount (Actual) –Cost Posted to G/L |
| Expected Cost | Cost Amount (Expected) – Expected Cost Posted to G/L |
Contains the cost per unit of the item.
Depending on what you selected in the Costing Method field, the Unit Cost field is filled as follows:
If the costing method is FIFO, LIFO, Specific, or Average, then the Unit Cost field is updated in the following cases:
If one of these conditions is true, then the Unit Cost field is updated with the value in the Last Direct Cost field on the item card.
Note The Unit Cost field is not updated if the current unit cost is higher than zero and the new unit cost is zero. A unit cost of zero is considered an exception from regular business. Therefore, the current unit cost is retained to provide the last known, relevant value. This exception applies even if the existing inventory has been revalued to zero.
If the item uses the costing method Average, then you can choose the field to open the Average Cost Calc. Overview window, which shows all the source value entries that are used to calculate the average cost, grouped and summarized by average cost period.
You can encrypt data on the Microsoft Dynamics NAV Server by generating new or importing existing encryption keys.
How to: Enable Encryption Keys
You can enable data encryption on the Microsoft Dynamics NAV Server instance that connects to the database.
If you export companies and other data that is secured by data encryption, then remember to also export the encryption key so that you can access the data after you import it into another database, for example when you restore a backup. Creating a backup of encrypted data involves the following high-level steps.
How to: Export and Import Encryption Keys
Note: You cannot generate different keys within one multiple-server instance environment.
Exporting an Encryption Key
You export an encryption key to make a copy of the key or so that it can be imported on another server instance.
Exporting an encryption key stores the encryption key that is used by the current server instance to a file on your computer or network.
To export an encryption key
Importing an Encryption Key
You can import an encryption key to a server instance from an encryption key file that was exported from another server instance or saved as a copy when the encryption was enabled.
You cannot import an encryption key on a server instance that already includes an encryption key. In this case, you must change the encryption key instead.
To import an encryption key
Changing an Encryption Key
If a server instance already has an encryption key, then you can replace the current encryption key with an encryption key that is stored in an encryption key file that was exported from another server.
To change an encryption key
How to: Create a Profile
You use the Profile card to create profiles for end users. Each profile is associated with a Role Center. Profiles are typically based on job titles in a company.
To create a profile
The procedure for modifying an existing profile is the same, except you select an existing profile in the Profiles page instead of clicking New.
How to: Assign a User to a Profile
You use the User Personalization page to assign a user to a profile.
To assign a user to a profile
| Field | Description |
| User ID | Choose the AssistEdit button to view all available user logins, select the relevant user, and then choose the OK button. |
| Profile ID | Select a profile ID that you have already created. Choose the AssistEdit button to view all available profiles. |
| Language ID | Select the appropriate language ID, or leave this field blank. |
| Company | Select a company from the Companies window. |
Note The Language ID and Company values are overwritten by user values when the user starts a session.
How to: Open Microsoft Dynamics NAV in Configuration Mode
To configure a profile, for example to customize the profile’s user interface, you must open the Microsoft Dynamics NAV Windows client in configuration mode.
To open the Microsoft Dynamics NAV Windows client in configuration mode
cd C:\Program Files (x86)\Microsoft Dynamics NAV\90\RoleTailored Client
Microsoft.Dynamics.Nav.Client.exe -configure -profile:”profileid”
Replace profileid with the name of the profile that you want to configure.
Important You must be the owner of a profile to open it in configuration mode
For example, to configure the Accounting Manager profile, use this command to open the Microsoft Dynamics NAV Windows client in configuration mode:
Microsoft.Dynamics.Nav.Client.exe -configure -profile:”Accounting Manager”
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