| # Actual Costs Correction (whina1230m000) Use this session to correct actual cost amounts for a range of items. You can correct actual costs by: Item type Item valuation group Warehouse valuation group Valuation method Warehouse Related topics Inventory valuation Moving Average Unit Cost (MAUC) Selection Settings Consider only when Actual Costs differs more than The minimum percentage that the newly calculated values must differ from the existing values to be updated. Reason The code that indicates the reason for the correction. Currency The currency that is printed on the report if you select the Success Report check box. For warehouses, the local currency of the selected warehouse is taken as the default value for this field. For warehouse valuation groups, the reference currency is selected by default. Transaction Date Transaction Date The revaluation date. Allowed values Effective Date Note To specify a date in the past, select Specific Date. Inventory Value New Inventory Value New Inventory Value Specify on what inventory valuation must be based. Select one of the following: MAUC (by Warehouse) Standard Cost Market Price (including surcharges) Market Price (excluding surcharges) Average Purchase Price (incl surcharges) Average Purchase Price (excl surcharges) Current Inventory Value Note To correct the MAUC for an item/warehouse combination that does not have the MAUC (by Warehouse) valuation method, use the MAUC Correction by Item (whina1231m000) session. If Market Price (including surcharges) or Market Price (excluding surcharges) is selected, the market price is retrieved from the Market Prices (whina1118m000) session. If Average Purchase Price (incl surcharges) or Average Purchase Price (excl surcharges) is selected, always the current average purchase price is taken, because no history is stored for the average purchase price. Therefore, the transaction date will not be used to retrieve the price. Mark-up Specify an additional percentage to determine the new inventory value. Level Inventory Value (Lot Pricing) If lot pricing applies, specify the appropriate level. Select one of the following: Item Lot Example For item A, two lots are present in your warehouse, lot A 00011 and A 00012. The value of lot A 00011 is 10 and the value of lot A 00012 is 15, while the market value is 12. Actual cost correction is to be performed if the market price is lower than the item price. If you select inventory level Lot, cost correction is not performed for lot A 00011, because its value 10 is below the market price. The value for lot A 00012 will change to 12, because its original value was 15. If you select inventory level Item, LN calculates the average value of all items of all lots for item A. If both lot A 00011 and A 00012 contain one item, the average value for lot A 00011 and A 00012 is 12.5. Therefore, cost correction is performed for both lots and changes from 12.5 to 12. If lot A 00011 contains two items and lot A 00012 contains one item, the average item value is (2*10 + 1*15) / 3 = 11.67. The average item value 11.67 is lower than the market price. Therefore, cost correction is not performed for either lot. Note If the lot exists in multiple warehouses, Lot will be selected. Even if the value entered in the session is Item, this value will be ignored for all lots in all warehouses. Example: Warehouse WH1 contains lots A, B, and C. WH2 contains lots B and D. WH3 contains lots E and F. If Item is selected, this value will be overwritten for all lots in WH1 and WH2, because lot B is present in both warehouses. For lots E and F (only in WH3) the level remains Item. Revaluation will be done also for warehouses that are outside the range, because the lot price is independent of the warehouse. If the lot price changes, this applies to all warehouses that contain the lot. Level Inventory Value (Serial Pricing) If serial pricing applies, specify the appropriate level. Item Serial Example For item A, two serialized items are present in your warehouse, item A 00011 and A 00012. The value of A 00011 is 10 and the value of item A 00012 is 15, while the market value is 12. Actual cost correction is to be performed if the market price is lower than the item price. If you select inventory level Serial, cost correction is not performed for item A 00011, because its value 10 is below the market price. The value for item A 00012 will change to 12, because its original value was 15. If you select inventory level Item, LN calculates the average value of all serials for item A. The average value for item A 00011 and A 00012 is 12.5. Therefore, cost correction is performed for both items and changes from 12.5 to 12. Market Price Price Used if Purchase Receipts exist after last Market Price Date Price Used if Purchase Receipts exist after last Market Price Date Select either Last Available Market Price or Last Available Order Price. This option is only available if either Market Price (including surcharges) or Market Price (excluding surcharges) is selected. Market Price Level Market Price Level The level that will define the lowest approved purchase price or last order price. Select one of the following: Item Item/Warehouse Item/Warehouse Valuation Group This option is only available if either Market Price (including surcharges) or Market Price (excluding surcharges) is selected. Market Price for Manufactured Items Market Price for Manufactured Items Select either of the following: Market Price for Manufactured Item The market price is retrieved from the Market Prices (whina1118m000) session. Because usually no purchase orders exist for manufactured items, in most situations market prices must be added manually here. FTP based on Market Prices for BOM-items The market prices of all items in the BOM are used to calculate the FTP for the manufactured item. In this case, Market Price for Manufactured Items means that the market price for the purchased item determines the value for the manufactured item. This option is only available if either Market Price (including surcharges) or Market Price (excluding surcharges) is selected. Price Calculation Code A specification of how a cost price, valuation price, or sales price is calculated. The code stores specific cost calculation data. The price calculation code that is defined in the Cost Price Calculation (CPR) Parameters determines the standard cost price. Other price calculation codes are used for simulation purposes. The price calculation code for customized items is stored by project. Example Specific operation rates Subcontracting rates Simulated purchase prices Surcharges This option is only available if FTP based on Market Prices for BOM-items is selected. Cost Price Calculation Method Select one of the following: Top-Down Single Level Bottom-Up This option is only available if FTP based on Market Prices for BOM-items is selected. Options Update Mode Update Mode Select either Simulate or Update. Options Consider only when new inventory value is lower than current value If this check box is selected, revaluation is performed only if the new value is lower than the current value. Note For lower cost or market value (LCMV) this option must be selected, because revaluation must be done only if the new value is lower. Reverse to original inventory value at start of current period If this check box is selected, the revaluation will be reversed in the next period. This option is only available if Transaction Date is set to Last Date of Previous Period. Include Service Reject Warehouses If this check box is selected, the actual costs are calculated for items related to service reject warehouses that are within the specified item/warehouse range. Print Error Report If this check box is selected, an error report on the correction process for the selected items is printed. Success Report If this check box is selected, the newly calculated values are printed. The report displays the following data: Item Warehouse Revaluation order Inventory Current value, both per unit and total value per item/warehouse New value, both per unit and total value per item/warehouse Percentage expressing the difference between the current and the new value Cost Details If this check box is selected, a report is printed that displays the current value, the new value, and the difference percentage per cost component. |