Cost Accounting for Resources (intro) 1/4

Previous serial was devoted to calculate actual cost for goods in production. On the same way, we have way to automatic calculate actual cost for resources (machines, vehicles and labor work) in NAV4Construction for project consumption. We have standard NAV calculation of actual cost for materials in purchase process and when we complete cost account for manufacturing and resources, we have all prerequisite for calculate construction position cost using norms on Bill Of Quantity in Quantity Surveyor process.

The goal of cost accounting is calculation of really actual cost for each resource in usage. Calculation work for resources usage in Job Ledger Entry, but also in Resources Ledger Entry. The process of cost accounting calculation is accomplished using the following steps:

  1. Posting of all Job Journal Resources Journal for period – standard NAV solution
  2. Posting of all Output Orders for period – NAV4Construction process
  3. Adjust Resource Cost automatic calculation for period – NAV4Construction process
  4. Applying Calculated Cost – NAV4Construction process

Posting of all Job Journal Resources Journal: We need to post all consumption of resources using Job Journal (if usage is for some project) or Resource Journal (usage out of projects). Job Journals and Resources Journals has some specific for using in NAV4Construction, but the most important is to post quantity of usage.

Posting of all Output Orders: As we need to post all Job and Resources Journal, we need to post all Output Orders. This is document for posting in construction management in NAV4Construction, but its results are the same as results of Job and Resources Journal postings.

Adjust Resource Cost automatic calculation: Cost Accounting Calculation is based on the same mapping resources cost types with G/L Accounts and dimensions filters as Manufacturing Cost Accounting. We need to start Adjust Resource Cost automatic calculation process and we need to choose model of calculation and period. NAV use sum of amounts from G/L Entries, but it need to divide with work consumption quantity. We must choose model, regarding will we divide cost amount with actual work usage or with planned work usage. I will explains for offered reasons some later. When we choose model of calculation, system will complete process.

Applying Calculated Cost: When process of calculation is completed, we get Direct Unit Cost and Unit Cost for future posting. If we want to apply this cost values to earlier desired period, we must confirm that process. If we confirm, NAV will update Unit Costs and Cost Amounts for all resources in Resource Ledger Entry and Job Ledger Entry at period we choose in previous period.

This is briefly process description. In next few posts, I will explain on more detailed way the most important processes.


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