Question

Inventory Valuation Issues

  • 5 July 2023
  • 4 replies
  • 115 views
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Hello, 

I am having an issue with inventory valuation on a specific item and a specific site and I cannot figure out how the system settled on the valuation. Attached is detailed inventory valuation listing from Dec 2022 - March 2023. All of the past period valuation and the transactions seem to be between 5.24-5.94. Yet somehow at the end of Period 12 (March 2023) the ending valuation is $1.19. I cannot figure out in the attached file where the issue is so I am wondering if this could be some kind of DB issue?

I have already ran the Validate Inventory with no change. We are also using the FIFO valuation method. 

 

Let me know if you see anything in the attached which may  be causing this issue. 

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4 replies

Kandy Beatty
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HI @byates 

I’m sure you have read the help but it depends on how the locations in the warehouse are set up. 

If the FIFO valuation method is assigned to a stock item, its unit costs are recorded in layers, each of which is identified by the receipt date, the quantity, and the purchase price (unit cost).

 

Each new receipt creates a new cost layer with a specific unit cost. You can view the cost of the last layer in the Last Cost box on the Price/Cost tab of the Stock Items form.

 

For each location in a warehouse that has the Cost Separately check box selected on the Locations tab of the Warehouses (IN204000) form, separate cost layers will be created, based on purchase receipts made to the particular location. If certain quantities of the items should be issued from the location, the extended cost will be computed based on those location-specific cost layers.

 

 

Kandy ~ If a member helped you, please *Like* their post, and if a member provided an answer to your question, please mark it as *Best Answer*.
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Thanks @kandybeatty49. The location costing layers is something I had not previously read about. 

 

So I guess my question at this point is how can I tell what transaction is creating costing issues? There should be a transaction(s) that are received in at a considerable lower cost and/or and adjustment that has changed the total blended costs? 

 

I find it suspect that all transaction costings look good but then the reported valuation at the end is off. To add to this the issue seems to “Self Correct” in the subsequent period. This is what was lending me to believe it was some sort of DB issue. 

Chris Hackett
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Hi @byates were you able to find a solution? Thank you!

Chris ~ Let us know how we're doing: https://forms.office.com/r/xmJUdZ1QE5 - A member helped you, please *Like* their post. A member provided an answer to your question, please mark it as *Best Answer*.
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@Chris Hackett 

Not one that makes sense to me. Essentially been told that the math works, which I agree with, but the line level transaction still do not make sense as to how they arrived at that valuation. 

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