Microsoft Business Solutions–Navision Inventory Costing
Course 8388: Two days; Instructor-led

Introduction
The focus of the two-day Inventory Costing course is to provide explanations of costing concepts and matters related to general inventory management concerned with the handling of goods purchased for resale in Microsoft Business Solutions–Navision®. This course has been designed to give the consultants and implementers of Navision with a focus on cost management a solid understanding of the principles and mechanisms on which the program is built. Based on this understanding, course participants develop confidence in how the program records and calculates all the relevant inventory costs.

Audience
This course is intended for Microsoft Certified Business Solutions Partners’ employees selling, implementing, and supporting Microsoft Navision, with focus on financial management, inventory management, and distribution.

At Course Completion
After completing this course, students should understand:

• Basic inventory accounting and inventory costing concepts.

• How the value of inventory is calculated in Microsoft Navision.

• How the posting flow in Microsoft Navision determines the cost of items, based on the defined costing methods.

• How the program calculates unit cost and average cost.

• How the functionality supports inventory revaluation, rounding, adjustment, and general ledger posting.

• How to set up inventory costing.

Prerequisites
To successfully participate in the inventory costing course, participants must have passed the Microsoft Navision Essentials test or have equivalent experience with the Microsoft Navision application. Additionally, participants should have a background in distribution/logistics to understand the underlying principles of these businesses.

Microsoft Certified Professional Exams
No Microsoft Certified Professional exams are associated with this course currently.

Course Materials
The student materials include a comprehensive workbook and other necessary items for this class.

Course Outline
Chapter 1: Introduction

This chapter describes the basic structure of the course and gives any additional information required by participants in the course.

Chapter 2: Inventory Costing Overview

This chapter introduces the basic concepts and terms commonly used in inventory accounting.

Main Topics

• Inventory Costs

• Inventory Accounting

After completing this module, students should be able to:

• Understand the basic concepts behind calculation of inventory value

• Understand the relationship of capitalized and non-capitalized costs

• Understand the valuation of cost objects in relation to their direct and indirect costs

• Understand the cost flow assumptions that support the various costing methods

Chapter 3: Inventory Costing Principles in Microsoft Navision

This chapter explains in broad terms how Microsoft Navision records the cost of goods sold through the posting process and eventually calculates the value of ending inventory.

Main Topic

• Accounting for Inventory in Navision

After completing this module, students should be able to:

• Understand how the program records quantity and value changes in entries

• Understand the different types of information that are recorded in item ledger entries and value entries

• Understand how inventory values are posted in the general ledger

Chapter 4: Inventory Costing Functionality

This chapter provides the details as to how the program calculates the flow of cost from acquisitions to outbound transactions and how adjustments to those costs are made with the adjustment batch job.

Main Topics

• Inventory Acquisition

• Cost of Goods Sold

• Inventory Transfers and Returns

• Inventory Adjustment

• Rounding

Labs

• Inventory Acquisition

• Cost of Goods Sold

• Inventory Transfers and Returns

• Inventory Adjustment

• Rounding

After completing this module, students should be able to:

• Understand the assignment of costs to acquisitions, including unit cost calculation

• Understand the flow of costs from purchases to sales for the various costing methods

• Understand how cost flow for transfers and returns is handled

• Understand the purpose and functioning of the inventory adjustment batch job

• Understand how and why the program creates rounding value entries

Chapter 5: Inventory Valuation Functionality

This chapter explains in detail how the program calculates the value of inventory and posts that value to the general ledger, as well as how the value can be adjusted and revalued.

Main Topics

• Inventory Valuation

• Posting Inventory Costs to the General Ledger

• Inventory Revaluation

• Physical Inventory

Labs

• Inventory v\Valuation

• Posting Inventory Costs to the General Ledger

• Inventory Revaluation

• Physical Inventory

After completing this module, students should be able to:

• Understand how inventory value is calculated in Microsoft Navision

• Post inventory value from value entries to the accounts in the general ledger

• Understand how the program handles expected costs, both in normal posting flow and in posting to the general ledger

• Revalue inventory items using the revaluation journal

• Perform a physical inventory

Chapter 6: Setting Up Inventory Costing

This chapter explains how to set up the program to handle a company’s inventory costing needs.

Main Topic

• Inventory Costing Setup

After completing this module, students should be able to:

• Set up the inventory costing options for the company in Microsoft Navision

• Set up individual items to use the correct costing method