Valuation Method

  • Fixed Transfer Price (FTP)

    The standard cost, including any surcharges or discounts. Item standard costs are calculated in the Calculate Standard Cost (ticpr2210m000) session.

    For further information, see:

  • Moving Average Unit Cost (MAUC)

    During receipt, goods are valued against the receipt price. For further information, see Moving Average Unit Cost (MAUC).

    If Inventory Valuation Method is set to Moving Average Unit Cost (MAUC), LN allows you to select the Valuation by Warehouse Valuation Group check box in the Item Data by Warehouse (whwmd2510m000) session; and the inventory valuation is based on the MAUC by Warehouse Valuation Group valuation method.

  • First In First Out (FIFO)

    When issued, goods are valued against the oldest inventory value. During receipt, the inventory value and the receipt quantity is stored in the Inventory Receipt Transactions (whina1512m000) session .The value of these receipts will be consumed during each issue in FIFO order.

    Example
    Receipt 1100 pcs of $5 each
    Receipt 2100 pcs of $6 each
    Inventory value100 x $5 + 100 x $6 = $1100
    Issue 1150 pcs consisting of 100 x $5 + 50 x $6 = $800
    Remaining Value50 pcs of $6 each = $300

     

  • Last In First Out (LIFO)

    When issued, goods are valued against the most recent inventory value. During receipt, the inventory value and the receipt quantity is stored in the Inventory Receipt Transactions (whina1512m000) session. The value of these receipts will be consumed during each issue in LIFO order.

    Example
    Receipt 1100 pcs of $5 each
    Receipt 2100 pcs of $6 each
    Inventory value100 x $5 + 100 x $6 = $1100
    Issue 1150 pcs consisting of 100 x $6 + 50 x $5 = $850
    Remaining Value50 pcs of $5 each = $250

     

  • Lot Price (Lot)

    The inventory is valued against the lot price defined for the specific item during receipt or issue. The lot price is filled with the purchase order price. For manufactured lot items, the lot price is filled with the standard cost value. For more information, refer to Lot pricing.

    Example
    Lot price6.50
    Receipt 1100 pcs of $6.5 each
    Receipt 2100 pcs of $6.5 each
    Inventory value200 x $6.5 = $1300
    Issue 1150 pcs of $6.5 each = $975
    Remaining Value50 pcs of $6.5 each = $325

     

  • Serial Price (Serial)

    The inventory is valued against the lot price defined for the specific item during receipt or issue. The serial price is filled with the purchase order price. For manufactured serialized items, the serial price is filled with the standard cost value.

    Example
    Serial price6.50
    Receipt 1100 pcs of $6.5 each
    Receipt 2100 pcs of $6.5 each
    Inventory value200 x $6.5 = $1300
    Issue 1150 pcs of $6.5 each = $975
    Remaining Value50 pcs of $6.5 each = $325