Inventory Costings (Bevica BI)

Understand expected, actual, and non-inventory costs used in Bevica BI measures.

Inventory Costings (Bevica BI)

TABLE OF CONTENTS

• Summary

  • Expected
  • Actual
  • Non Inventory
  • Inventory or All
• Which value to report on

  • Sales
  • Purchase
  • Inventory
• Costs and Business Central

Business Central and Bevica have some standard concepts for how they handle inventory costings, which are important to understand when using the Power BI reports to ensure you are measuring the appropriate or correct values.

Bevica uses the FIFO costing method for all duty-controlled items.

There are some assumptions made on expected setup. That is, Automatic Cost Posting is turned on, Expected Costs will be posted to the G/L, and Automatic Cost Adjustment is being used, or at least that it will be run daily before the reports are refreshed. The specifics depend on your implementation of Bevica and business processes. For example, do you ship & invoice on dispatch, or ship and then invoice later.

NOTE THAT ALL VALUES ARE EXCLUDING VAT

Summary

At a high level, there are three types of inventory values which are recorded. These apply to Costs and Sales. To understand them, it helps to think about the stages of a typical transaction in Business Central.

Expected

The Expected values are ones which have been either shipped or receipted but have not yet been invoiced. For Purchases, this is Goods Received Not Invoiced, where the goods have arrived but you have not yet posted the invoice against the receipt. For Sales transactions, it is against Sales amounts where you have shipped the goods but not yet invoiced the customer.

Actual

The Actual values are ones which have been fully invoiced so can be considered a final value. For Purchases, the Purchase Invoice has been posted against the receipt, and for Sales, the sales invoice has been posted.

When the actual cost is posted, the expected costs will have been reversed.

Non Inventory

Non-Inventory values are usually only on Sales transactions and account for things such as a delivery cost which has been posted through additional charges (if using that module). On a Purchase, these are recognized as actual costs.

Inventory or All

To help aggregate the values, there are X (Inventory) measures (e.g., Inventory Cost (Inventory)) which are Expected + Actual to combine both values to help with reporting.

There are also X (All) measures (e.g., Inventory Cost (All)) which is Expected + Actual + Non-Inventory.

Which value to report on

Ultimately, it's a business decision and dependent on how you use Business Central, but all options are available!

Using the Completely Invoiced filter on the Item Ledger Entries can be used to filter to only the types of entries you want.

Sales

Sales values can be expected or actual depending on whether the order(s) have been shipped AND invoiced or just shipped.

The Margin calculations include both Expected and Actual costs.

Note that even if the stock being depleted is an Actual cost, the Sales Cost on Shipping will be Expected.

Please also refer to Target Cost: Sales (Bevica Power BI) if you use, or want to use, target costs.

Purchase

In most instances, you want both costs, but this can depend on your reporting requirements.

Inventory

This really depends on what you're measuring or reconciling. For most inventory reports, you want both actual and expected as it is stock on hand.

Costs and Business Central

To deep dive into the specifics of how Business Central handles inventory costings, refer to this article and the links therein: Managing Inventory Costs.

Or speak to your Consultant.