Average Cost Calc. Type in inventory setup

matthewtaing

Hi,

Would like to know if there's anybody's customer are using the option item&location&variant for the average cost cal. type?

Would like to know the difference from the first option which is item other than the average cost are calculated by different warehouse?

Is this setup working or are there any problems faced for those that is using this option? Any bugs or known problems for this setup?

Thanks a lot.

ssingla

Dear Friend,

The option just gives the option of calculating the average cost for an item as a whole for the complete company or you want different average cost for different locations and variants.

Eg :

Location A Item XYZ Purchase Cost $10
Location B Item XYZ Purchase Cost $11

if 1st Option is selected the average cost will be $10.50 and in option 2 each location will have its own average cost calculated on the basis of transactions of that location.

As far as I know there is no bug in any of these option and both options are widely used.

sajidhanifkhan

Further to Sandeep the average cost has no setup problem or bug. Only thing to make you more clear that it depands on available item qty and if you have recived some credit memos from any vendor or if you have some reutrn shipment orders than to adjust the average cost you always need to run the Adjust item cost entries up to certain date.

thanks
Sajid

Alex_Chow

matthewtaing wrote:

Hi,

Would like to know if there's anybody's customer are using the option item&location&variant for the average cost cal. type?

Would like to know the difference from the first option which is item other than the average cost are calculated by different warehouse?

Is this setup working or are there any problems faced for those that is using this option? Any bugs or known problems for this setup?

Thanks a lot.

If you've setup more than one location code or even remotely thinking about expanding your business to have more than one warehouse, then set your calc type to item&location&variant.

If you use the former, you will not be able to analyze cost per location until you change it to item&location&variant.

Alex_Chow

In addition, even if you set the calc type to item&location&variant, you can still analyze the costing on the item as a whole.

Navision should make this as a standard setting instead of having the option of calculating by item only.

sajidhanifkhan

Hi,

Can any one give an idea about applying credit memo on the balance quantity? Folloing is the scneario;

Item A Was purchased on amount 11176 each for quantity of 12 peices then 6 peices sold from one of the location. Then 6 peices purchased again for same amount of 1176 each. Now quantity become again 12 peices now the vendor reduced the price and issued a credit memo of 882 for all 12 balance items which means 73.5 to dedact from each Item then the average cost should be 1102.5 for Item A and after sales of an other 6 peices the avg cost is showing 1145.068 which is causing the ptofil margin less. Can any one reply the reason why the avg cost is not showing 1102.5 which is the correct amount as per calculator.

I will appreciate quick replies.

regards
Sajid

ssingla

Have you run the adjust cost batch job.

sajidhanifkhan

Yes. I run the Adjust item Cost entries and noticed that if I go to value entries of the item this cost applies on to items which has been sold as well. Since we need to apply the cost on the recipt numbers of the purchases of the particular item.

Alex_Chow

Check your posting date.

Navision calculates the average cost by the posting date. So if all of your said entries were made on teh same day, you'll get the average cost as of that day.

sajidhanifkhan

If I consider deadlizard is saying the logic of navision does that mean that for each day I will get different average cost?

I have transactions in different dates for example on 01 I bought 12 peices than next day I transfer 6 peaices to different locations after a week I bought again 6 peices in two PO and then sales on different dates.

What I noticed that the credit memo which vendor supplied to reduce the price is applying for all 18 purchased quantity where as vendor gave it only for the 12 balance item thus the avg cost is different.

So any body can suggest how I can restrict system to apply the credit memo only on to the balance quantity at that time and keep the same avg cost till end of stock or any further purchase or credit memo.

Regards
Sajid