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Former Member
Jan 27, 2009 at 06:04 AM

Inventory Valuation is Wrong.

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Hi All,

The inventory valuation is changing when we raise single PO with Multiple GRPO and A/P Invoice

Scenario:

1. PO is raised with 100 Qty, Unit price 99, Tax 12.5% and Freight Rs. 1000 total comes to Rs. 12137.5

2. GRPO is raised with 50 Qty Unit price & tax are same and freight Rs. 500 (freight is configured based

on row total)

3. the item cost will be Rs. 109, since Tax is not included when raising a GRPO

4. Goods Issue is done with Last Evaluated Price, with 30 Qty, item cost is Rs. 109

5. A/P invoice is raised for the total 50 Qty with same unit price, tax and Freight

6. the unit price now changes to 121.375, since the tax and freight are effected after raising the A/P

invoice

7. again raise a GRPO with 20 Qty with same unit price, tax and Freight is Rs. 200

8. Now the Item cost is changed to 113.25

9. Issue the Qty of 20, the item cost taken is Rs. 113.25, this is raised after GRPO

10 Raise a A/P invoice for qty 20, with same unit price, tax and Freight

11.now the Item cost is Rs. 125.5

Now the issue when I finish point no. 6 and verify the report it shows 121.375 as unit price and again when I view after point no. 8 the unit price will be 113.25

Here there will be no control on the valuation method and the report gives wrong information, when compared from point no. 6 to point no.8 or when the report is generated for a period

How to resolve the valuation method, since Business One is considering based on the transaction and not from a single document process.

Client is having around 13000 items and monthly they will be entering around 1000 POu2019s and 2000 GRPOu2019s which will be very difficult to have a control on the inventory valuation.

PO is entered PO Dept, GRPO is entered by Stores dept and A/P Invoice is by Finance dept, with the above said process there will be no control in SAP for the stock entered. how to handle this scenario

Or is there any work around where in the cost will be same until and unless the PO is closed.

Please help me to resolve.

Regards

Shanker

Edited by: Paul Finneran on Mar 11, 2009 10:23 AM