Hi,
Inventory price calculation happens by weighted avg.(except Standard cost) even
if you specify valuation method as FIFO, LIFO etc....
Only when we Run - Recalculation or closing it is going to consider the
valuation for cost price calculation
and the significance of include physical value is simply - used to consider the
physically updated transactions also while calculating the cost price
I dont think while doing month end we need to change the valuation method...
Thanks,
Jagadeeh K
----- Original Message ----
From: Mukesh Kumar <[EMAIL PROTECTED]>
To: Axapta-Knowledge-Village@yahoogroups.com
Sent: Wednesday, September 17, 2008 11:14:32 AM
Subject: Re: [Axapta-Knowledge-Village] Inventory Recalculation
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] co.in>
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
