Equate Balance of Receipts with Inventory Level (tdipu0201m000)
Use this session to equate the cumulative purchase receipts with the inventory on hand.
The cumulative quantity is increased each time a quantity is invoiced. The quantity is never decreased, so the quantity can become very high. In this case, new receipts no longer affect the average purchase price/landed cost. To calculate realistic average purchase prices and landed costs for the specified item types and items, you can decrease the cumulative receipts by equating its value to the inventory on hand.
You must execute this session periodically only if the following are applicable:
- The Method of Calculating Average Purchase Price is Purchases (Cum.) in the Purchase Order Parameters (tdpur0100m400) session.
- The Method of Calculating Average Landed Cost is Cumulative Purchases in the Landed Costs Parameters (tclct0100m000) session.
The average purchase price plus the average landed cost can be used to calculate an item's standard cost.
Average prices (Avg. P) are calculated as follows:
(Cum.Receipts * Old Avg.P) + (Qty Received * Order Price) รท (Cum.Receipts + Qty Received)
| Avg.P | New average price |
| Cum.Receipts | Cumulative receipts |
| Qty Received | Quantity received or approved |
| Old Avg.P | Old average price |
- You can start this session from the Items - Purchase (tdipu0101m000) session.
- You can view average purchase prices by item in the Item Actual Purchase Prices (tdipu1500m100) session.
- You can view average landed costs by item in the Item Actual Landed Costs (tclct3600m000) session.
Field Information
- Item Type
- Purchase Price
-
If this check box is selected, the cumulative purchase receipts are reset for the purchase price.
The cumulative purchase receipts are reset as follows:
Inventory on hand - (received quantity - rejected quantity - invoiced quantity) - Landed Cost
-
If this check box is selected, the cumulative purchase receipts are reset for the landed cost.
The cumulative purchase receipts are reset as follows:
Inventory on hand - (received quantity - rejected quantity - invoiced quantity) - Test Run
-
If this check box is selected, a report is printed that displays the simulated equation of the cumulative receipts with the inventory on hand.
- Print Report
-
If this check box is selected, a report is printed that displays the equation of the cumulative receipts with the inventory on hand.