Inventoriable Cost:- The Inventoriable Costs are costs (i.e. Direct Cost, Indirect Cost, Revaluations that have an impact on the asset value on the balance sheet.
Non Inventoriable Cost:- Non Inventoriable Cost, which doesn’t affect the actual cost amount of the item, it doesn’t post tot the inventory GL account.
Example of Non Inventoriable Cost
Consider a example where we ship material to customer. For shipping the items we hired a courier service which charges USD 50 to deliver the package. In order to consider the freight charges into profitability of that particular invoice we uses item charge assignment in purchase invoice and tag the charges to sales shipment lines of the sales invoice of the customers.
In Navision/Business Central there is a field called Inventoriable in Value Entry(5802) Table. This defines whether cost is Inventoriable or non-Inventoriable. Let us check out the same process in Navision/Business Central.
1. Make a sales order in Navision/Business Central for item 70000, Qty as 100 and unit price as 200.
2. Post the Sales Order and convert it to Posted Sales Invoices
3. Load the Freight Charges on the Sales shipment lines through Purchase Invoice.
Note:- Non Inventoriable cost is part of Profit & Loss Account not Balance Sheet.
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Non Inventoriable Cost:- Non Inventoriable Cost, which doesn’t affect the actual cost amount of the item, it doesn’t post tot the inventory GL account.
Example of Non Inventoriable Cost
Consider a example where we ship material to customer. For shipping the items we hired a courier service which charges USD 50 to deliver the package. In order to consider the freight charges into profitability of that particular invoice we uses item charge assignment in purchase invoice and tag the charges to sales shipment lines of the sales invoice of the customers.
In Navision/Business Central there is a field called Inventoriable in Value Entry(5802) Table. This defines whether cost is Inventoriable or non-Inventoriable. Let us check out the same process in Navision/Business Central.
1. Make a sales order in Navision/Business Central for item 70000, Qty as 100 and unit price as 200.
2. Post the Sales Order and convert it to Posted Sales Invoices
4. Charge to the Sales Shipment lines
5. Post the Purchase Invoice then Navigate the Posted sales invoice and check the Value entry.
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