Actual Costs Correction (whina1230m000)

Settings

Consider only when Actual Costs differs more than: The minimum percentage that the newly calculated values must differ from the existing values to be updated.
Reason: The code that indicates the reason for the correction.
Currency: The currency that is printed on the report if you select the Success Report check box. For warehouses, the local currency of the selected warehouse is taken as the default value for this field. For warehouse valuation groups, the reference currency is selected by default.

Transaction Date

The revaluation date.

Allowed values

Current Date

The date for which the valuation is calculated and/or actualized is the current date.

Last Date of Previous Period

The date for which the valuation is calculated and actualized is the last date of the previous financial period of the financial company linked to the warehouse for which the valuation is performed.

The warehouse for which the valuation is performed and the linked financial company can be located in different time zones. Select this option to ensure that the inventory transactions included in the valuation fall within the previous financial period of the financial company.

For example, an inventory transaction created at 8/31/2014 11:45 PM falls in financial period August if the warehouse where the transaction is performed and the financial company are located in the same time zone. If the financial company is located in a time zone where the time is one hour ahead, the inventory transaction is posted in financial period September.

Specific Date

The date for which the valuation is calculated and actualized is a date in the past, which you can enter in the Specific Date field.

Note: To specify a date in the past, select Specific Date.

New Inventory Value

Specify on what inventory valuation must be based.

Select one of the following:

MAUC (by Warehouse)
Standard Cost
Market Value (including surcharges)
Market Value (excluding surcharges)
Average Purchase Price (incl surcharges)
Average Purchase Price (excl surcharges)
Current Inventory Value

Note:

To correct the MAUC for an item/warehouse combination that does not have the MAUC (by Warehouse) valuation method, use the MAUC Correction by Item (whina1231m000) session.
If Market Value (including surcharges) or Market Value (excluding surcharges) is selected, the market value is retrieved from the Market Values (whina1118m000) session.
If Average Purchase Price (incl surcharges) or Average Purchase Price (excl surcharges) is selected, always the current average purchase price is taken, because no history is stored for the average purchase price. Therefore, the transaction date will not be used to retrieve the price.

Mark-up

Specify an additional percentage to determine the new inventory value.

Level Inventory Value (Lot Pricing)

If lot pricing applies, specify the appropriate level.

Select one of the following:

Item
Lot

Example

For item A, two lots are present in your warehouse, lot A 00011 and A 00012. The value of lot A 00011 is 10 and the value of lot A 00012 is 15, while the market value is 12. Actual cost correction is to be performed if the market value is lower than the item price.

If you select inventory level Lot, cost correction is not performed for lot A 00011, because its value 10 is below the market value. The value for lot A 00012 will change to 12, because its original value was 15.

If you select inventory level Item, LN calculates the average value of all items of all lots for item A.

If both lot A 00011 and A 00012 contain one item, the average value for lot A 00011 and A 00012 is 12.5. Therefore, cost correction is performed for both lots and changes from 12.5 to 12.

If lot A 00011 contains two items and lot A 00012 contains one item, the average item value is (2*10 + 1*15) / 3 = 11.67. The average item value 11.67 is lower than the market value. Therefore, cost correction is not performed for either lot.

Note:

If the lot exists in multiple warehouses, Lot will be selected. Even if the value entered in the session is Item, this value will be ignored for all lots in all warehouses. Example: Warehouse WH1 contains lots A, B, and C. WH2 contains lots B and D. WH3 contains lots E and F. If Item is selected, this value will be overwritten for all lots in WH1 and WH2, because lot B is present in both warehouses. For lots E and F (only in WH3) the level remains Item.
Revaluation will be done also for warehouses that are outside the range, because the lot price is independent of the warehouse. If the lot price changes, this applies to all warehouses that contain the lot.

If serial pricing applies, specify the appropriate level.

Item
Serial

Example

For item A, two serialized items are present in your warehouse, item A 00011 and A 00012. The value of A 00011 is 10 and the value of item A 00012 is 15, while the market value is 12. Actual cost correction is to be performed if the market value is lower than the item price.

If you select inventory level Serial, cost correction is not performed for item A 00011, because its value 10 is below the market value. The value for item A 00012 will change to 12, because its original value was 15.

If you select inventory level Item, LN calculates the average value of all serials for item A. The average value for item A 00011 and A 00012 is 12.5. Therefore, cost correction is performed for both items and changes from 12.5 to 12.

Price Used if Purchase Receipts exist after last Market Value Date

Select either Last Available Market Value or Last Available Order Price.

This option is only available if either Market Value (including surcharges) or Market Value (excluding surcharges) is selected.

Market Value Level

The level that defines the lowest approved purchase price or the last order price.

Select one of the following:

Item
Item/Warehouse
Item/Warehouse Valuation Group
Item/Site

This field is applicable only if new inventory value is set to Market Value (including surcharges) or Market Value (excluding surcharges).

Note: The Item/Site is displayed only if Multisite functionality is implemented.

Market Value for Items with BOM

Select either of the following:

Allowed values

By Main Item: The commercial price of the main item is apportioned to the components based on the standard cost of the components.
By Component: The commercial price of each of the components is used.

Price Calculation Code

price calculation code

This option is only available if By Component is selected.

Cost Calculation Method

Select one of the following:

Top-Down
Single Level
Bottom-Up

This option is only available if By Component is selected.

Update Mode

Update Mode: Select either Simulate or Update.

Options

Consider only when new inventory value is lower than current value

If this check box is selected, revaluation is performed only if the new value is lower than the current value.

Note: For lower cost or market value (LCMV) this option must be selected, because revaluation must be done only if the new value is lower.

Reverse to original inventory value at start of current period

If this check box is selected, the revaluation will be reversed in the next period.

This option is only available if Transaction Date is set to Last Date of Previous Period.

Include Service Reject Warehouses

If this check box is selected, the actual costs are calculated for items related to service reject warehouses that are within the specified item/warehouse range.

Print

Error Report

If this check box is selected, an error report on the correction process for the selected items is printed.

Success Report

If this check box is selected, the newly calculated values are printed.

The report displays the following data:

Item
Warehouse
Revaluation order
Inventory
Current value, both per unit and total value per item/warehouse
New value, both per unit and total value per item/warehouse
Percentage expressing the difference between the current and the new value

Cost Details

If this check box is selected, a report is printed that displays the current value, the new value, and the difference percentage per cost component.

Actual Costs Correction (whina1230m000)

Field Information