Tag: Ledger

Corfu Navision 2016, Functional Tips, How To, Information, Tip & Tricks

How do I: Set Up General Ledger Accounts for Invoice Rounding Differences

Ashwini Tripathi

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

  1. Set up the account in the Chart of Accounts window and name it Invoice Rounding or as required name. (I am showing the standard Account defined in Demo Database, you can setup your own as per the requirement)
  2. In the Posting Type field, select <Blank>.
  3. Fill in the VAT Bus. Posting Group field or can leave blank.
  4. Fill in the VAT Prod. Posting Group You may want to set up a new group code that can be used for invoice rounding, if don’t have any existing to be used.

InvoiceRounding-1

Now you need to assign the invoice rounding account to posting groups in the Customer Posting Groups window and the Vendor Posting Groups window.

InvoiceRounding-6

InvoiceRounding-7

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Corfu Navision 2016, Data, Development Tips, Functional Tips, How To, Information, Tip & Tricks

Accounts in the General Ledger

Ashwini Tripathi

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:

  • Cost Amount (Actual)
  • Cost Posted to G/L
  • Cost Amount (Expected)
  • Expected Cost Posted to G/L

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