on 11-17-2020 1:18 PM
I forgot to attach the image.
This is done now.
Hope this can encourage readers to answer me. 🙂
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Hello, everybody
SAP B1 introduced the Serial/Batch Valuation Method (S/BVM) since version 9.1. Previously, there were only 3 valuation methods in SAP B1: FIFO, Average and Standard Costs.
I intend using S/BVM in my company, but I don’t understand the logic of S/BVM at all. It seems so weird. I hope someone can shed some light.
In one SAP publication, I read:
The 2 main benefits of S/BVM are:
Fine! But when I look at the examples given, they seem to contradict these principles.
The following example is from the How-to Guide “How to Set up and Use Serial/Batch Valuation Method in SAP Business One” – page 35
Calculating Costs for Goods Receipt PO Priced at Zero
Assume: Do not block multiple receipts for the same batch
Actually, GRPO 2 represents 10 items received at 0 price.
But whenever goods are received at a price different from the current cost, this triggers a cost recalculation.
I assume you are familiar with the calculations. I have omitted the details.
So, GRPO 2 is received at $ 0 cost, but SAP recalculates it to 10 x $2.5 = $ 25.
SAP calls the $ 25 the transaction value of the GRPO (the actual value = 0).
I really don’t understand this:
Total inbound costs = 100 + 0 = 100
Total outbound costs = 50 + 75 = 125
So, Inbound <> Outbound, which means that goods received at $100 are issued at $ 125. Weird, very weird!
The Guide explains that the difference of $25 is posted to the Price Difference A/c.
The Guide also recommends to Block multiple receipts for the same batch in order to avoid these weird results!
But why?
Kindly enlighten my confused mind.
Thanks
Leon
Hi Leon,
Batch/SN valuation method is very useful if you want to track the cost of a specific batch/SN and have that perspective.
I warn you that you must take note that the mindset is different from Moving Average because this method is designed to "remember" all the transactions that affected a particular batch.
Therefore only inputs are considered!
You also have a particular audit report for it (on this report only items with this valuation are represented)
You may find more info below:
EDIT: For SQL queries use the OBVL Table for batch valuation instead of OIVL
Hope I've helped!
Best regards,
Edgar
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Hello, Edgar Ferreira
Thanks for your reply.
I have already implemented B/SN Valuation method in my company.
In order to avoid the complications arising from multiple receipts for the same batch, I am forced to Block multiple receipts for the same batch. I am not very happy (because the SQL queries I need become more difficult to write), but I have to make do with what SAP offers at the moment!
Best Regards and have a nice day!
Leon
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