Manufacturing issues

[Former Member]

Hi team ,

I have one scenario regarding manufacturing issue

Item evaluation -moving average

Date :02/28/2009

Item A

Item Qty - 2000

Date :12/31/2008

Item A

Item Qty : 3000

Item needs to be revaluated for price

Item revaluation was done for price via price change with putting date 12/31/2008,however it will update the e price change for existing qty 2000

As B1 cannot show that qty = 3000 at the revaluation date , how this can be handled .......

Requirement price needs to be revaluated becasue of business region ....

I was thinking that how manufacturing company that needs to evaluate their price and use moving average ,

How would they close quarterly or monthly to get the report if the time lag is usually 5 to 6 days and qty gets reduced during this time ...

Any idea .........besides journal entry ..ideas can also recommended if item valuation method needs to be changed because item needs to be revaluated ....

Thank you

Bishal

[former_member187989 · Accepted solution]

hi bishal,

Which date Item-A stock get posted ?

Have u tried with Revaluation type Debit/Credit ?

Jeyakanthan

[Former Member · Accepted solution]

Hi Jey ,

The item A can be posted in any date ..however what we are trying to adust some entries and do year end closing ....

Actually year end close has to be done around Januaryt and fo rsome reason it is delayed ..

Price are fluctuated a lot due to economic condition so price needs to revaluated .. So inventory on hand on december is obviously different than in February becasue Item produced were relleased and sold ..

Then by revaluation function works for price change but due to perpetual inventory method ..it will reduce the amt qty on hand but not the qty on hand at the ) time of december (back date) even you do revauation by using back date..

However there are thousands of item and that needs to revaluated based on the december information .

1. What I am looking for ..

I can close with journal entry ..but donot want to do every year the same process as we close every month and time lag for closing is 5-6 days and how other companies are handling who needs to revaluate their price

and using moving average ...

2. Is it better to handle this stuation much easily if standard cost is used ...if any one can share experience

Any direction ..... I can do inventory decrease and increase off set so i have to do for all item .. and let em check the inventory accounting affect with moving average ......

Thank you

Bishal..

[Former Member · Accepted solution]

I am not sure if it would help - but did a big Brazil Mfg site last year (175+ users)

the govt forced a change monthly in the Item Cost - based on changes is the official exchg and labor rates

we put in an add-on for complex mfg called "be.as" that actually did full BOM/Route functions and created a "calculated" cost for manufactured items. Because the labor rates changed at end of month - we had to do a end of month inventory revaluation. In the be.as add-on we built a series of functions that would allow me to create a "Cost Price" price list for manufactured items with a 3 click cost roll calculation process. Then at end of month we would pull the re-valuation form and with a formatted search would be promoted to select the Cost Price List created - which would auto-fill the re-valuation form with the new cost = the Cost Price List price - and then the just review and click OK to update all costs for manufactured items.

process seems to work very well - especially if you are using average for raw materials and standard for manufactured items (which is a very common approach).

have used it in 5 countries now (Singapore, India, China, Germany, Brazil) so seems to be a solid approach

[Former Member]

Hi brother

In SAP 2007 B PL 08

It is possible t o change the inventory valuation method

Go to inventory > inventory management > inventory valuation method

Thanks

Avtar Singh Saini