Inventory Analysis

You can use Inventory Analysis to perform these analyses:

• ABC analysis
• Slow-moving analysis
• Inventory valuation
• Inventory aging analysis

• Inventory variance posting

  The difference between the valuation amount that is recorded after the receipt of goods and the updated value for that particular receipt. Processing of inventory variances results in financial transactions that clear the interim variance account, and if possible assign the variance to inventory.

  An inventory variance can be created under these conditions:

  • The receipt price is changed after the receipt is confirmed.
  • The invoice price differs from the receipt price.
  • The production order is closed and the actual standard cost differs from the estimated cost.

• Inventory valuation

  You can use various valuation methods in LN such as Standard cost, Moving-Average Unit Cost (MAUC) to perform inventory valuation. Each valuation method results in a particular inventory value in the ledger.

• Moving Average Unit Cost (MAUC)

  Moving-Average Unit Cost (MAUC) is an inventory valuation method that is used for accounting purposes. The MAUC is the average value for each unit of the current inventory. Inventory is valued against the average receipt price. For each new receipt, the MAUC is updated. To calculate the inventory value for an item, the MAUC inventory valuation method uses all types of transactions. MAUC is the financial method for inventory valuation.

• MAUC by warehouse valuation group and enterprise unit

  In a warehouse valuation group, the MAUC, MAUH, and total inventory values can be determined by enterprise unit.

  Consequently, for each warehouse valuation group, the MAUC, MAUH, and total inventory values are determined for the item stored in the warehouses linked to the same enterprise unit.

• Inventory value

  You can use a context application to view a bar chart for inventory values by warehouse or by item group for a specific warehouse.

• Inventory turns

  You can use a context application to view a bar chart for inventory turns by warehouse or by item group for a specific warehouse.

• Inventory aging analysis

  To find out which items in your inventory are slow moving or even becoming obsolete, you can perform the inventory aging analysis in the Perform Inventory Aging Analysis (whina1440m000) session.

  This analysis determines how much time has passed since the last time a given item was consumed.