Skip to Content

Perpetual Inventory Moving Average Scenario

Dear Experts,

We would like to implement in SAP Business One 9.2 PL0.2 with perpetual inventory and Moving Average as valuation method the following scenario:

1. We post the Goods Receipt PO and A/P Invoices from the vendors.

2. The goods are then transferred or sold.

3. Afterwards, (for example at the end of the month or the end of the year) our vendors send us an A/P Credit Memo with value only, as a discount (rebate).

4. We would like to know how we can handle this case regarding the cost of the items involved in order to affect their cost. As the value discount is posted after some or all of the goods are sold, how their cost will be updated with the reduction that is coming from the later posted A/P Credit memo?

Any advice will be welcomed.

Thank you in advance for your help.

Kind Regards,

Alexandros Karadimitropoulos

Add comment
10|10000 characters needed characters exceeded

  • Get RSS Feed

3 Answers

  • avatar image
    Former Member
    Feb 01, 2017 at 01:10 PM

    Hi Alexandros,

    I can try to understand your scenario and got some conclusions as per my understanding so i trying to explain you hopes it is helpful to you

    Suppose

    1..From X vendor you can purchase 10 Quantities of A items of $100 each so AP invoice cost is $ 1000 (As per moving Average 10 * $100)

    so you makes outgoing payment to X vendor of $1000

    2.. After that you sold that A item Quantity 10 to your customer with amount $120 each so AR invoice cost is $ 1200(As per moving Average 10 * $120)

    After selling your profit is $200 on this 10 Quantity

    after end of year if your vendor gives you discount of $100 using A/P credit memo

    So your total profit becomes $300 it means that your vendor sold to you A item in $90 (After A/P credit note )

    Thanks

    Add comment
    10|10000 characters needed characters exceeded

    • Hello Girish,

      Thank you for ypur reply. The points that you descrebed are correct, this is the scenario we are referring to. The main issue we are facing is how this profit will be updated and also how this will affect the cost of the item because once we post the credit note the cost should be recalculated and be updated with the reduced cost. In the example you descreibed above, the cost of item A is 10$ due to the original AP Invoice. Once the Credit Note is posted the cost should become 90$.

      We would like some recommendation on the way we could apply this in SAP B1.

      Kind Regards,

      Alexandros Karadimitropoulos

  • avatar image
    Former Member
    Feb 02, 2017 at 07:13 AM

    Hi Alexandros,

    tell me that your outgoing payment process is done or not against this item purchase ? if completed then it is not possible to add A/P Credit Memo against this A/P invoice otherwise he makes standalone A/P credit memo ............. so please do tell me what is he(vendor) was done

    Thanks

    Add comment
    10|10000 characters needed characters exceeded

    • Hello dear experts,

      We notice that the scenario we described is not related with the outgoing payment. The issue is that we see that the value discount from the A/P Credit Note does not affect the Costs of Goods sold nor is calculated in the item cost.

      Is this correct? How can we handle this?

      King Regards,

      Alexandros

  • Feb 02, 2017 at 07:56 AM

    Hi,

    Please refer below guide as reference. You can download official document from SAP Business One customer portal using S-user ID and password.

    http://www.pioneerb1.com/wp-content/uploads/2012/06/How-to-Set-Up-and-Manage-a-Perpetual-Inventory-System-88.pdf

    Regards,

    Nagarajan

    Add comment
    10|10000 characters needed characters exceeded