on 07-25-2012 8:48 AM
Hello,
For some of the items, we see that the last purchase price is not the actual price on Ap invoice?
What can be the reason? We are testing on 8.82 Pl 05
Rgds,
RR
Valuation method is moving average and we are also creating landed cost.
But creation of landed cost should increase the value where as in this case, last purchase price is reduced. What can be the reason.
Rgds,
RR
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.
HI Rudra,
The prices in the Last Purchase Price price list are updated automatically by SAP Business One when you perform any of the following transactions:
If SAP Business One has not performed any of the above transactions for an item, it is not included in the Last Purchase Price price list.
Moving Average
SAP Business One valuates your inventories with the moving average price on an ongoing basis. This means a valuation takes place based on the corresponding quantities and prices for each goods receipt and issue, and the moving average price is updated accordingly. The valuation price is calculated as the quantity multiplied by the average price. Assuming prices will increase over time, the items in stock will be overvalued. This gain is not as high as under the FIFO method.
FIFO
Under this valuation method, SAP Business One assumes that the items that entered the warehouse first will also exit first. This means goods issues are valuated with the prices that are valid for the first goods receipts. For example, if you purchase an item at three different prices on three different occasions, SAP Business One assumes that the first items you sell are from the first delivery. This means the prices from the first purchase order are used for the sale and calculation of the corresponding gross profit, until the quantity from the first purchase document is gone. At this point, SAP Business One uses the price for the items from the second purchase order. Assuming prices will increase over time, the items in stock will be valuated using the higher prices from the later purchase documents.
By Price List
You can use one of the price lists defined in SAP Business One to valuate the warehouse inventories. When you choose this method, the Price Source field appears. In the dropdown list, select a price list. SAP Business One then uses the prices defined for the items in the price list you have selected.
Last Evaluated Price
You can also perform the valuation based on the last evaluated prices. In this case, SAP Business One uses the last calculated costs for each item. If you run a valuation under the FIFO method, for example, and then run a valuation for the last calculated costs, SAP Business One valuates the items using the last value that was determined for an item under the FIFO method.
Regards
Kennedy
Hi,
You may check the solution part of the sap note ,889702 - Last Purchase Price is updated when the following applies, below to solve your problem :
Solution
Last Purchase Price List:
The prices in this price list are updated automatically by the system when the following transactions are performed:
On perpetual inventory system:
When completing production order and receiving the BOM to warehouse (WH) the BOM's last purchase price is updated with the BOM cost in the related inventory posting.
In case the BOM is of FIFO/MAP, last purchase price is updated with total sum of components' costs.
In case the BOM is Standard, last purchase price is updated with the BOM standard price.
On non-perpetual inventory system:
When completing production order and receiving the BOM to WH, last purchase price of BOM is updated with the BOM price in BOM definition.
Disassembly production BOM:
On both, perpetual and non-perpetual inventory system, last purchase price of components is not updated when receiving the components to stock.
If none of these transactions have been performed in the system for an item, the "Last Purchase Price" price list will not contain the item.
Only the list of the transactions mentioned above changes the price of an item in the "Last Purchase Price" price list.
Please note that:
Even if a business gets some samples for free, their zero price should not affect LPP which is used for setting sale prices/gross profit calculation/etc.
You can refer other price lists to the "Last Purchase Price" price list with a defined factor. You cannot, however, change the prices in the "Last Purchase Price" price list manually.
JM
Hi Kennedy,
Thanks for your feedback, it helps.
Also, found the reason why the last purchase price was getting reduced.
It was due to the fact that the itemes were part of an ap invoice for which the whse was dropship. And i also think that last purchase price is for information purpose only and we can use the last price report under inventory to see the last purchase price.
we have a separate price list for purchase so i don't think there is any issue in this..
Let me know if you think otherwise.
Rgds,
RR
User | Count |
---|---|
108 | |
12 | |
11 | |
6 | |
6 | |
4 | |
4 | |
3 | |
3 | |
3 |
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.