Moving Average Inventory Valuation

[Former Member]

Hello Everyone

I have doubt on the inventory valuation methods as to how an item cost is arrived at by the various methods Moving Average,FIFO and Standard methods.Also after some transactions if i change the valuation method(which is allowed) what effects does it have or if this is the wrong forum please redirect me.Please throw some light on this issue.

Thanks in advance

Raghy

[Former Member · Accepted solution]

hai,

In the company details we r define the valuation method. Before we create itemmaster we should define valuation method for the particular item, once transaction done means, after that we cannot change the valuation mathod for that item. In company details we can change method for the another item.

through inventory evaluation report we can change the valuation mathod and we can see the report.

Regards,

Ramya.

[Former Member · Accepted solution]

Hi ramya

Thank you for answering part of my question.Actually i really wanted to know how the valuation methods work ie i want the calculation of how a material cost is arrived at by each method.

BTW after i have made a couple of transactions ie Goods Receipt PO or Goods Issue,i'm still able to change the valuation method in combo box only that the check box saying Default Valuation method is not enabled.

Thanks

Raghu

[Former Member · Accepted solution]

hai,

valuation mathod is changing itemwise.

u made good receipt for the particular item, after that we cannot change the valuation mathod of that item. u can see in itemmaster data->inventory tab.

if we change the valuation method in company details its applicable to only new item not existing item.

u received 10 items 100 Rs. after that u receive another 5 item 150 Rs.

FIFO ---> first in first out.

now u delivery 5 items it s tke material cost 5* 100=500

suppose u delivery 15 item means

it's take 10*100=1000

5*150= 750

totally 1750 like that

Moving Average 1000+750=1750 material cost 1750/15=116.66

standard u assign cost 100

it take material cost 100 only

suppose u receive item 150 means, matreial cost 100, and 50 goes to varience account.it take matrial cost whar u assign in the item master .

Regards,

Ramya.

[Former Member · Accepted solution]

Hi,

Thank you very much for clearing that up.Now i want to use Item Cost in my user screen.How can i pick up the Unit Price since in Item Master it is not saved.I want to know the current value of an item.Please help me how can i find it.

Thanks

Raghu

[Former Member · Accepted solution]

hai,

I cann't get yout point. According to ur coding it is saving know. which cloumn name u r taking in ur coding?

can u send the particular query?

Regards,

Ramya.

[Former Member · Accepted solution]

According to your example for Moving Average the item rate is

1750/150=116.6.Where can i find this 116.6 rate.That is my question.

Hope i'm clear in my point

[Former Member · Accepted solution]

hai,

u can see the value in inventory audit report. These method help to calculate the stock value. Not to the other screen. we cannot pick up these value to our screen.

regards,

Ramya.

[Former Member · Accepted solution]

Hi,

I was wondering where to find it.

Thanks Anyway

Rgahu

[preety_goel · Accepted solution]

Hi,

Please check selfhelp on the topic on following link:

https://websmp105.sap-ag.de/~form/sapnet?_SHORTKEY=01100035870000707558&_SCENARIO=011000358700000001...;

Regards

Preety