Adjust Capacity Cost automatic calculation process recalculate evaluated Capacity Costs to actual Capacity Cost. Actual costs of capacity are the really costs bookkeeper posted as payables costs on G/L accounts (depreciations, payrolls, energy, fuel, maintenance, transport, marketing…).
Actual Cost Amount will be reallocated on entries for each production order (released or finished status). Evaluated posted costs will be corrected with additional values. User could see only really actual costs on each entry created from PO.
Adjust Capacity Cost automatic calculation process is based on next steps:
- Starting the calculation
- Mapping initialization
- Takeover of percent share correction
- Check the applicability of the direct costs
- Calculation and posting of entries for correction
- Adjust Cost for Item Entries
Starting the calculation
We need to start Cost Accounting->Adjust Capacity Cost Journal. When we opened a journal, we need to set Journal Group with specific field Date Filter. We must choose specific Journal Group for each period.
When we prepared Adjust Capacity Cost Journal for calculating process, we need to initialize mapping for specific calculation. It means that system will make copy of mapping from Work/Machine Centers and after that we can adjust mapping for each calculation.
Takeover of percent share correction
This calculation will automatic adjust all changes on allocated costs after changing values and coefficients.
Check the applicability of the direct costs
This command makes checking whether a Work/Machine Centers not working in calculation period. If WC/MC doesn’t working in this period, system cannot make posting. System will reallocated this direct cost values to indirect costs and posting will be done.
Calculation and posting of entries for correction
When all previous steps are done, we only need to post the Adjust Capacity Cost Journal. After posting, we will get new entries in G/L Entry, Capacity Ledger Entry and Value Entry, and entries in Item Ledger Entry will be modified.
Adjust Cost for Item Entries
Before we start Adjust Cost for Item Entries, we need to do next:
- We must to post invoice for all materials consumed in production orders
- Is all consumed items posted on production orders
- Change status to Finished in all production orders
- Make FA Depreciation posting for desired period of calculation
- Make Adjust Exchange Rates posting for desired period of calculation
After all of these steps, we need to start standard NAV command Adjust Cost – Item Entries and everything is done.