Tag Archives: Credit

Inventory value in foreign prepayment scenarios

I have this client who operates in very specific conditions: majority of their vendors are foreign companies which invoice them in a foreign currency (USD) and almost invariably ask for at least 50% prepayment.

NAV can handle prepayments and foreign currencies like a charm—the issue lies elsewhere: the fluctuations of currency exchange rate can easily cause real and tangible losses.

Even though prepayment invoice is fully closed by a prepayment applied against it, the actual costs of goods is not calculated from prepayment invoice, but from the actual invoice. And if there was difference between currency exchange rate at prepayment and invoicing dates, the inventory value reflects the actual invoiced value (instead of the prepaid value), there is currency exchange gain/loss which is fictitious, but taxable.

Thankfully, there are ways to avoid this.

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Top 12 Microsoft Dynamics NAV features to defeat recession

imageThere are three kinds of people: those who watch things happen, those who make things happen, and those who wonder what happened.

The world is in crisis. Some countries are hit harder than the others, some markets have sunk deeper than the others, but the effects of global economic recession are obvious, and if the crisis didn’t hit you yet, fasten your seatbelt—it surely will.

With the whole world wondering what’s going on, the winners will be those who learn to navigate the troubled waters and make things happen. This is much easier with a piece of good business management software, such as Microsoft Dynamics NAV.

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