Price List expert Help

[Former Member]

I have the following settings in my B1/2007 system

1. Administration/System Initialisation/General settings/BP/Default payment Term for Supplier= 30Days(linked to Last Purchase Price, Price list)

2. Administration/System Initialisation/Company Details/Basic Initialisation Tab/Item group valuation method=FIFO

In the stock Item Master Data/Stock DATA Tab/, the Valuation Method does not pick up My Default set in 2 ( for some reason it is on Moving Average?)

Also in the COST PRICE field is not picking up any cost price and I wonder where is the DEFAULT SETTING for this - I looked everywhere and I could not find one. The issue here is that in order for FIFO system to work, this field should be picking up the table that contains the historical information - the charges into COGS are derived from this field (I think?)

The missing link for me is to understand where is the setting that makes FIFO pick up the correct historic Cost.

At present my current system settings do not give me the correct charges to COGS and it may be my lack of understanding or something wrong in B1. I hope its me..

If anyone has cracked this, I would be grateful for an explanation

Thanks

Robert

[Former Member · Accepted solution]

Historical cost, I mean First in First Out (FIFO). In the System Initialisation/Document Settings/Calculate GP/ Base Price List= Last Purchase Price - according to this setting the GP is based on Last Purchase Price. However, my settings in the Item Groups are set to FIFO, so there seems to be a conflict here.

I suspect that the Item Group settings are the ones that count.

Thanks

Robert

[former_member583013 · Accepted solution]

Robert,

Generally the setting here is to be on Item Cost, this way the Cost used by SAP will be utilized for GP calculations

System Initialisation/Document Settings/Calculate GP/ Base Price List > Item Cost

Last Purchase Price can different each time you receive an Item and can be inaccurate in GP calculations

Suda

[Former Member · Accepted solution]

Method A -What I am saying is that in FIFO you calculate the GP based on the oldest price - ie if we have products purchased at say £2 than we calculate the GP (SALES say £5- original cost of £2) PROFIT = £3

So my Item Group Setting is now calculating on this concept.

Method B - However, the Document setting is doing the calculation of GP differently, based on the LAST price paid. ( last price paid= £4 (GP= 5-4=1)

Maybe this is not a problem but two ways of calculating GP but method A is the one charged to the Accounts ( I think)

Thanks

Robert

[former_member583013 · Accepted solution]

You are correct, Method A where the price is £2 is what is charged to the Accounts

[Former Member · Accepted solution]

Thanks problem solved. Allowing a second way of working out GP it only creates confusion and it is not necessary. However, I understand the issue now.

Robert

[former_member583013]

Robert,

I am not quite clear with your sentence

"The missing link for me is to understand where is the setting that makes FIFO pick up the correct historic Cost. "

What are you referring as Historical Cost?

Suda