Change Valuation Method (whina1232m000)

Use this session to change the inventory-valuation method for a range of items.

Note: 

You can modify the valuation method of item/warehouse combinations for which project pegged inventory exists. However, only these inventory valuation methods are allowed:

  • Last In First Out (LIFO)
  • First In First Out (FIFO)
  • Moving Average Unit Cost (MAUC) by Warehouse Valuation Group

Field Information

Selection
Lot Price
Lot Price

Select the appropriate option:

  • No changes
  • Change from No to Yes
  • Change from Yes to No
Serial Price
Serial Price

Select the appropriate option:

  • No changes
  • Change from No to Yes
  • Change from Yes to No
Valuation Method
Old Valuation Method

The inventory-valuation method to be replaced.

Priority 1

The new inventory-valuation method with priority 1.

Standard Cost

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

The standard cost valuation method is allowed for project pegged items and non-project pegged items.

For further information, see:

  • Cost Calculation Code
  • Standard Cost
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.

Receipt 1 100 pcs of $5 each
Receipt 2 100 pcs of $6 each
Inventory value 100 x $5 + 100 x $6 = $1100
Issue 1 150 pcs consisting of 100 x $5 + 50 x $6 = $800
Remaining Value 50 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.

Receipt 1 100 pcs of $5 each
Receipt 2 100 pcs of $6 each
Inventory value 100 x $5 + 100 x $6 = $1100
Issue 1 150 pcs consisting of 100 x $6 + 50 x $5 = $850
Remaining Value 50 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.

Lot price 6.50
Receipt 1 100 pcs of $6.5 each
Receipt 2 100 pcs of $6.5 each
Inventory value 200 x $6.5 = $1300
Issue 1 150 pcs of $6.5 each = $975
Remaining Value 50 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.

Serial price 6.50
Receipt 1 100 pcs of $6.5 each
Receipt 2 100 pcs of $6.5 each
Inventory value 200 x $6.5 = $1300
Issue 1 150 pcs of $6.5 each = $975
Remaining Value 50 pcs of $6.5 each = $325
Priority 2

The new inventory-valuation method with priority 2.

Standard Cost

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

The standard cost valuation method is allowed for project pegged items and non-project pegged items.

For further information, see:

  • Cost Calculation Code
  • Standard Cost
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.

Receipt 1 100 pcs of $5 each
Receipt 2 100 pcs of $6 each
Inventory value 100 x $5 + 100 x $6 = $1100
Issue 1 150 pcs consisting of 100 x $5 + 50 x $6 = $800
Remaining Value 50 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.

Receipt 1 100 pcs of $5 each
Receipt 2 100 pcs of $6 each
Inventory value 100 x $5 + 100 x $6 = $1100
Issue 1 150 pcs consisting of 100 x $6 + 50 x $5 = $850
Remaining Value 50 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.

Lot price 6.50
Receipt 1 100 pcs of $6.5 each
Receipt 2 100 pcs of $6.5 each
Inventory value 200 x $6.5 = $1300
Issue 1 150 pcs of $6.5 each = $975
Remaining Value 50 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.

Serial price 6.50
Receipt 1 100 pcs of $6.5 each
Receipt 2 100 pcs of $6.5 each
Inventory value 200 x $6.5 = $1300
Issue 1 150 pcs of $6.5 each = $975
Remaining Value 50 pcs of $6.5 each = $325
Priority 3

The new inventory-valuation method with priority 3.

Standard Cost

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

The standard cost valuation method is allowed for project pegged items and non-project pegged items.

For further information, see:

  • Cost Calculation Code
  • Standard Cost
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.

Receipt 1 100 pcs of $5 each
Receipt 2 100 pcs of $6 each
Inventory value 100 x $5 + 100 x $6 = $1100
Issue 1 150 pcs consisting of 100 x $5 + 50 x $6 = $800
Remaining Value 50 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.

Receipt 1 100 pcs of $5 each
Receipt 2 100 pcs of $6 each
Inventory value 100 x $5 + 100 x $6 = $1100
Issue 1 150 pcs consisting of 100 x $6 + 50 x $5 = $850
Remaining Value 50 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.

Lot price 6.50
Receipt 1 100 pcs of $6.5 each
Receipt 2 100 pcs of $6.5 each
Inventory value 200 x $6.5 = $1300
Issue 1 150 pcs of $6.5 each = $975
Remaining Value 50 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.

Serial price 6.50
Receipt 1 100 pcs of $6.5 each
Receipt 2 100 pcs of $6.5 each
Inventory value 200 x $6.5 = $1300
Issue 1 150 pcs of $6.5 each = $975
Remaining Value 50 pcs of $6.5 each = $325
By Warehouse Valuation Group

If this check box is selected, valuation is performed by warehouse valuation group.

Note: This option is only available if Moving Average Unit Cost (MAUC) is selected.
By Warehouse Valuation Group

If this check box is selected, valuation is carried out by warehouse valuation group if the valuation method with priority 1 is Mov. Aver. Unit Cost (MAUC). If this check box is cleared, valuation is carried out by warehouse.

By Warehouse Valuation Group

If this check box is selected, valuation is carried out by warehouse valuation group if the valuation method with priority 2 is Mov. Aver. Unit Cost (MAUC). If this check box is cleared, valuation is carried out by warehouse.

By Warehouse Valuation Group

If this check box is selected, valuation is carried out by warehouse valuation group if the valuation method with priority 3 is Mov. Aver. Unit Cost (MAUC). If this check box is cleared, valuation is carried out by warehouse.

Update Defaults in Inventory Valuation Methods

If this check box is selected, the default inventory valuation method for the selection range is also changed.

Inventory Value
New Inventory Value
Lot Price or Serial Price (if already present)

If this check box is selected, the lot price or the serial price (if present) is the new inventory value if the valuation method is changed to Lot Price (Lot) or Serial Price (Serial).

New Inventory Value

Select the appropriate option:

Allowed values

MAUC (by Warehouse)

moving-average unit cost (MAUC)

Standard Cost

Standard cost

Market Value (including surcharges)

Market Value (excluding surcharges)

Average Purchase Price (incl surcharges)

Average Purchase Price (excl surcharges)

Current Inventory Value

Price Used if Purchase Receipts exist after last Market Value Date

The price that must be used if the last invoice is not yet approved.

Market Value Level

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

Select appropriate option:

  • 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 option is only available if the multisite concepts are activated.
Inventory Hours
New Inventory Hours
Lot Hours or Serial Hours (if already present)

If this check box is selected, the lot hours or the serial hours (if present) are the new inventory hours if the valuation method is changed to Lot Price (Lot) or Serial Price (Serial).

New Inventory Hours

Select the appropriate option:

Allowed values

MAUH (by Warehouse)

Standard Hours

Current Inventory Hours

Options
Update Mode

To preview the changes resulting from the data specified, select Simulate. To apply the changes, select Update.

Settings
Reason

The code that indicates the reason for the change.

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.

Exchange Rate Type

The exchange-rate type that is used to convert the local currency of the warehouse into the currency that is used for the report.

Options
Include Service Reject Warehouses

If this check box is selected, changes are also carried out for service reject warehouses.

Print
Error Report

If this check box is selected, an error report on the change valuation method is printed.

Success Report

If this check box is selected, the newly changed valuation methods are printed.

If this check box is selected, the cost components with the accompanying amounts are also printed.