​Does anybody ever use Serial/Batch Valuation Method?

[leon_laikan]

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:

• The cost used for an item in outbound transactions is the actual inbound cost of that specific batch.
• Hence, profitability can be calculated for a specific batch.

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?

• For what reason does SAP recalculate the GRPO value from 0 to 25?
• SAP also recalculates the batch cost (the cost of the closing stock) as: Total Value of all RECEIPTS / Total Qty of all RECEIPTS.
• Why does SAP permit goods to be received at $ 100, but issued at $ 125?
• What objectives are SAP trying to achieve through S/BVM?

Kindly enlighten my confused mind.

Thanks

Leon

[eferreira]

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:

https://help.sap.com/doc/download_multimedia_ebooks_businessone91_serialbatchvaluationmethod_story_h...

EDIT: For SQL queries use the OBVL Table for batch valuation instead of OIVL

Hope I've helped!

Best regards,

Edgar

[leon_laikan]

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