It was good year again.
It was good year again.
I could not believe this while reading this news, but Microsoft and LinkedIn just announced today have entered into a definitive agreement under which Microsoft will acquire LinkedIn.
I don’t want to think about money, I’ll prefer to think more about impact on our business world. LinkedIn is the most popular business social network and Microsoft already has Yammer and Skype. With all these three products, I think they will be a really serious part of global social network game.
And when we add here some other Microsoft tool (now I just try to imagine all possible integrations)… I think we will know more in the few following days. But, today this news was a really BOMB!
In almost all NAV implementations, we need to configure and use costing (inventory, manufacturing, jobs…). This is one of the main functionalities in all ERP solutions as well as in NAV. Because of that I will prepare the series of costing articles with an overview of the principles used within the costing area.
In this first part, I will make a small introduction about costing methods. Microsoft Dynamics NAV supports the five following costing methods:
Now, in the following part I will just describe these costing types.
The FIFO costing method means “First In First Out”. It first assigns the value of the increases with the earliest posting dates on inventory. COGS is calculated using the value of the first inventory acquisitions.
An item’s unit cost is the actual value of any receipt of the item, selected by this explained FIFO rule. In inventory valuation, it is assumed that the first items placed in inventory are sold first.
The LIFO costing method means “Last In First Out”. It first assigns the value of the increases with the most recent posting dates on inventory. COGS is calculated using the value of the most recent inventory acquisitions.
An item’s unit cost is the actual value of any receipt of the item, selected by previous explained LIFO rule. In inventory valuation, it is assumed that the last items placed in inventory are sold first.
The Average costing method calculates a weighted average of the remaining inventory on the last date of the average cost period in which the inventory decrease was posted. COGS is calculated using the average value of the inventory acquisitions.
An item’s unit cost is calculated as the average unit cost at each point in time after a purchase. For inventory valuation, it is assumes that all inventories are sold simultaneously.
The Specific costing method overrides assumption about how cost flows from inventory increase to inventory decrease with the accurate cost information, creating a fixed application between these entries.
An item’s unit cost is the exact cost at which the particular unit was received.
The Standard costing method works with predetermined costs (rather than actual cost) for all inventory increases and it affects the value of the inventory decreases.
An item’s unit cost is preset based on estimated. When the actual cost is realized later, the standard cost must be adjusted to the actual cost through variance values.
This was only small introduction about costing types as preparation for the more advance knowledge about using costing in Microsoft Dynamics NAV. In the following articles, I’ll describe more about facts when users need to use these costing methods as best practices. I’ll write about all details in posting results and posting rules as well.
The WordPress.com stats helper monkeys prepared a 2015 annual report for this blog.
Here’s an excerpt:
The Louvre Museum has 8.5 million visitors per year. This blog was viewed about 75,000 times in 2015. If it were an exhibit at the Louvre Museum, it would take about 3 days for that many people to see it.
See you next year…
This is almost the end of this year and I want to wish to all of you a Merry Christmas and Happy New Year.
It is also the time to make a small retrospective of this year. Personally, this year was really great for me, as well as the previous year. I had a lot of very good projects, I started with publishing new magazine (and already got the award for this idea), I traveled a lot of countries and I was speaker on lot of very interesting conferences all around the world (and also in my country). I met a lot of new good friends. We got a new really exciting NAV version… I hope the next year will be the same and maybe even better.
I want to say thanks to all people that supported me. Of course, thanks to all people that do not supported me :-); they are a reason I am trying to be better. I want to all of you to have a year that is better than I already had this year (this is not so easy, but I really wish this for you 🙂 ). I also hope, we will get an awesome new version of NAV (‘Madeira’) next year; I already know some features and I am sure it will be really amazing new version.
And, of course, special thanks to my friends all around the world and especially to my family (my wife, son and dog).
Few days ago, Microsoft has published new “Give Me 5” FY16Q1 customer promotion. New customers that buy license between now and end of September can get Starter Pack + 2 Full Users for 6000USD. But I have to underline that this is available for US market only.
Unfortunately, we have not explanation why this promotion is only for US market. Only we know, this promotion is valid for Microsoft Dynamics NAV and GP and for new customers on US market.
I hope, we will get the same promotion in the rest of the world soon. The same promotions help us every time in competition with the local solutions and in undecided potential customers. I hope it will be good for Microsoft and for partners altogether.