Hi,
It depends upon the client what kind of inventory model he wants to
use.
if you select the physical check box checked, in this case Ax
considers the physical value of those items which are a part of inventory
means packing slip updated but not invoiced. Bcoz financial value comes
after the purchase order is invoiced. In Packing slip updated cases we dont
have financial value of inventory but we have physical value. So if you use
this check box checked, Ax considers the physical value of those cases in
recalculation or closing which are not invoiced but packing slip updated. It
helps us to get the true value of the inventory in our stock.
Regards,
Mukesh
On Tue, Sep 16, 2008 at 5:34 PM, Yadhav Krishnan <[EMAIL PROTECTED]>wrote:
> Hi friends....
>
> I have a query. Can anyone (anyone Please!!!!!!!!) update me on the
> significance of Using Include physical Value Check Box in the Inventory
> Model group Form.
> My client wants to calculate inventory on a weighted average basis during
> the Month. At the time of Recalculation and Inventory Closing, The Cost has
> to be calculated on a FIFO Basis and the adjustments distributed
> accordingly.
>
>
> These are the following settings which I did.
>
>
> Inventory Management --> Inventory Model Group
> Inventory model field is set to FIFO
> Include Physical Value Check Box is enabled.
> Post Financial Inventory check Box is enabled
> Post Physical Inventory check Box is enabled
>
> Actually during the month the cost of the item is taken as the Average of
> the Packing Slips Received for the Purchase Orders.
> E.g.: If there are 3 PO's
>
> Purchase Order 1 for 100 Nos @ Rs.10
>
> Purchase Order 2 for 200 Nos @ Rs.15
>
> Purchase Order 3 for 150 Nos @ Rs.20
>
> Purchase Order 1 is invoiced for 100 Nos @ Rs.10. and consumed. And Out of
> PO 2, 100 Nos is consumed.
>
> Now if I am consuming another 50 Nos the Cost of the Item is taken as (200
> x 15) + (150 x 20) / (200 + 150) = 6000/350 = Rs. 17.14
>
>
> For the same scenario if I do not mark the "Include Physical value Check
> Box" in the Inventory model group Form
>
> Purchase Order 1 for 100 Nos @ Rs.10 = 1000
>
> Purchase Order 2 for 200 Nos @ Rs.15 = 3000
>
> Purchase Order 3 for 150 Nos @ Rs.20 = 3000
>
> Purchase Order 1 is invoiced for 100 Nos @ Rs.10. and consumed. And Out of
> PO 2, 100 Nos is consumed.
>
> Now if I am consuming another 50 Nos the Cost of the Item is taken as (100
> x 15) + (150 x 20) / (100 + 150) = 4500/250 = Rs. 18.
>
> Its takes the cost of the Item as Financial cost available (at that
> instant) divided by the Remaining physical Quantity available.
>
>
> At the time of recalculation the adjustments entries are getting posted
> according to the selection of the check box of "Include Physical Value"
>
> I read in another forum that the Inventory Model field must be set to
> Weight Average during the month process.. and Before recalculation set it to
> FIFO, Do the recalculation and Closing.
>
> After Closing Set the Inventory model field back to Weighted average.
>
> Some one Kindly let me know the procedure...
>
>
> Thanks in advance
>
> Yadhav
>
>
>
--
Mukesh Mutreja
# 09818421567
