Equate balance of receipts with inventory level

New in Infor LN SP1

In the Purchase Order Parameters (tdpur0100m400) session, you can use the Method of Calculating Average Purchase Price field to determine how the average purchase price is calculated:

  • Current Inventory
    The average purchase price is calculated based on the average price of the current inventory.
  • Purchases (Cum)
    The average purchase price is calculated based on the average price of the cumulated purchases up to the time of the new receipt.

If you select Purchases (Cum), and the value of the cumulative receipts is high, the influence of the order price on the average purchase price is very small. If this influence becomes too small, you must decrease the value of the cumulative receipts by equating the value with the inventory on hand.

In Infor LN SP1, you can use a new session, the Equate Balance of Receipts with Inventory Level (tdipu0201m000) session, to decrease the value of the cumulative receipts. You must run the session periodically to ensure that realistic average purchase prices for the items are calculated.