<?xml version="1.0" encoding="utf-8"?>
<Session ID="/baanerp/td/ipu/tdipu0201m000" xml:lang="en">
   <Header>
      <Title>Equate Balance of Receipts with Inventory Level (tdipu0201m000)</Title>
   </Header>
   <HelpTopic>
      <AimSection>
         <Paragraph>Use this session to equate the cumulative
		  purchase receipts with the inventory on hand.</Paragraph>
         <Paragraph>The cumulative quantity is increased each time a quantity is
		  invoiced. The quantity is never decreased, so the quantity can become very
		  high. In this case, new receipts no longer have influence on the average
		  purchase/landed cost price. To calculate realistic average purchase and landed
		  cost prices for the specified item types and items, you can decrease the
		  cumulative receipts by equating its value to the inventory on hand.</Paragraph>
         <List>
            <ListIntro>You must execute this session periodically only if the
			 following are applicable:</ListIntro>
            <ListItem>The <Link href="/baanerp/td/pur/tdpur0100m400#tdpur000.mavp.4" role="formfield">Method of Calculating Average Purchase Price</Link> is <GUIRef href="/baanerp/td/domains/pur.mavp#cum.purchase" role="option">Purchases (Cum.)</GUIRef> in the <GUIRef href="/baanerp/td/pur/tdpur0100m400" role="session">Purchase Order Parameters (tdpur0100m400)</GUIRef> session.</ListItem>
            <ListItem>The <Link href="/baanerp/tc/lct/tclct0100m000#tclct000.mavl" role="formfield">Method of Calculating Average Landed Cost Price</Link> is <GUIRef href="/baanerp/tc/domains/lct.mavl#cum.purchase" role="option">Cumulative Purchases</GUIRef> in the <GUIRef href="/baanerp/tc/lct/tclct0100m000" role="session">Landed Costs Parameters (tclct0100m000)</GUIRef> session.</ListItem>
         </List>
      </AimSection>
      <GeneralSection>
         <Paragraph>The average purchase price plus the average landed cost price
		  can be used to calculate an item's <Link href="/baanerp/ti/glossary/glossary#CostPrice_ti" role="glossary">cost price</Link>.</Paragraph>
         <Paragraph>Average prices (Avg. P) are calculated as follows:</Paragraph>
         <Formula space-and-orientation="indented-estimated">
            <Paragraph>(Cum.Receipts * Old Avg.P) + (Qty Received * Order Price) ÷ (Cum.Receipts + Qty Received)
</Paragraph>
            <FigLegend>
               <LegendEntry>
                  <Symbol>Avg.P</Symbol>
                  <Desc>New average price</Desc>
               </LegendEntry>
               <LegendEntry>
                  <Symbol>Cum.Receipts</Symbol>
                  <Desc>Cumulative receipts</Desc>
               </LegendEntry>
               <LegendEntry>
                  <Symbol>Qty Received</Symbol>
                  <Desc>Quantity received or approved</Desc>
               </LegendEntry>
               <LegendEntry>
                  <Symbol>Old Avg.P</Symbol>
                  <Desc>Old average price</Desc>
               </LegendEntry>
            </FigLegend>
         </Formula>
      </GeneralSection>
      <GeneralSection>
         <List>
            <ListItem>You can start this session from the <GUIRef href="/baanerp/td/ipu/tdipu0101m000" role="session">Items - Purchase (tdipu0101m000)</GUIRef> session.</ListItem>
            <ListItem>You can view average purchase prices by item in the <Link href="/baanerp/td/ipu/tdipu1500m100" role="session">Item Actual Purchase Prices (tdipu1500m100)</Link> session.</ListItem>
            <ListItem>You can view average landed cost prices by item in the <Link href="/baanerp/tc/lct/tclct3600m000" role="session">Item Actual Landed Cost Prices (tclct3600m000)</Link> session.</ListItem>
         </List>
      </GeneralSection>
      <RelatedTopics>
         <SectionTitle>Related topics</SectionTitle>
         <RelTopic>
            <Link href="/baanerp/ti/onlinemanual/000030" role="manual">Price calculation code</Link>
         </RelTopic>
         <RelTopic>
            <Link href="/baanerp/ti/onlinemanual/000077" role="manual">Cost price calculation</Link>
         </RelTopic>
      </RelatedTopics>
   </HelpTopic>
   <Fields>
      <FieldHelp ID="type.f" OtherIDs="type.t">
         <Header>
            <Title>Item Type</Title>
         </Header>
         <FuncDesc>A classification of items used to identify if the item is, for
		example, a purchased item, a manufactured item, or an equipment item. Depending
		on the item's type, certain functions will only apply to that item.</FuncDesc>
         <Note>
            <SectionTitle>Note</SectionTitle>
            <Paragraph>ERP Enterprise only takes into account the item's default item type, as specified in the <GUIRef href="/baanerp/td/ipu/tdipu0101m000#tcibd001.kitm" role="manual">Item Type</GUIRef> field of the <GUIRef href="/baanerp/td/ipu/tdipu0101m000" role="session">Items - Purchase (tdipu0101m000)</GUIRef> session. The item type that is displayed in the <Link href="/baanerp/td/ipu/tdipu0101m000#act.kitm" role="formfield">Actual Item Type</Link> field of the <GUIRef href="/baanerp/td/ipu/tdipu0101m000" role="session">Items - Purchase (tdipu0101m000)</GUIRef> session is ignored.</Paragraph>
            <Paragraph>For instance, if you set this field to <GUIRef href="/baanerp/tc/domains/kitm#manufacture" role="option">Manufactured</GUIRef>, ERP Enterprise does not equate the cumulative receipts with
			 the inventory on hand for items whose <GUIRef href="/baanerp/td/ipu/tdipu0101m000#act.kitm" role="manual">Actual Item Type</GUIRef> reads <GUIRef href="/baanerp/tc/domains/ibd.kitm#manufacturing" role="option">Manufactured</GUIRef>, but whose (default) <GUIRef href="/baanerp/td/ipu/tdipu0101m000#tcibd001.kitm" role="manual">Item Type</GUIRef> is set to <GUIRef href="/baanerp/tc/domains/ibd.kitm#purchased" role="option">Purchased</GUIRef> in the <GUIRef href="/baanerp/td/ipu/tdipu0101m000" role="session">Items - Purchase (tdipu0101m000)</GUIRef> session.</Paragraph>
         </Note>
      </FieldHelp>
      <FieldHelp ID="f.purchase.price">
         <Header>
            <Title>Purchase Price</Title>
         </Header>
         <FuncDesc>If this check box is selected, the cumulative purchase receipts are reset
		  for the purchase price.</FuncDesc>
         <SimpleSection>
            <Paragraph>The cumulative purchase receipts are reset as
			 follows:</Paragraph>
            <Formula space-and-orientation="indented-estimated">
               <Paragraph>
                  <Link href="/baanerp/tc/ibd/tcibd1500s100#tcibd100.stoc" role="formfield"
                        Update="Yes">On Hand</Link> - (received quantity - rejected quantity - invoiced quantity)</Paragraph>
            </Formula>
         </SimpleSection>
      </FieldHelp>
      <FieldHelp ID="f.landed.c.price">
         <Header>
            <Title>Landed Cost Price</Title>
         </Header>
         <FuncDesc>If this check box is selected, the cumulative purchase receipts are reset
		  for the landed cost price.</FuncDesc>
         <SimpleSection>
            <Paragraph>The cumulative purchase receipts are reset as
			 follows:</Paragraph>
            <Formula space-and-orientation="indented-estimated">
               <Paragraph>
                  <Link href="/baanerp/tc/ibd/tcibd1500s100#tcibd100.stoc" role="formfield"
                        Update="Yes">On Hand</Link> - (received quantity - rejected quantity - invoiced quantity)</Paragraph>
            </Formula>
         </SimpleSection>
      </FieldHelp>
      <FieldHelp ID="test.run.yn">
         <Header>
            <Title>Test Run</Title>
         </Header>
         <FuncDesc>If this check box is selected, a report is printed that displays the <Emphasis>simulated</Emphasis> equation of the cumulative receipts with the
		  inventory on hand.</FuncDesc>
      </FieldHelp>
      <FieldHelp ID="print.report.yn">
         <Header>
            <Title>Print Report</Title>
         </Header>
         <FuncDesc> If this check box is selected, a report is printed that displays the
		  equation of the cumulative receipts with the inventory on hand.</FuncDesc>
      </FieldHelp>
   </Fields>
</Session>