Default inventory valuation methods for item and warehouse combinations

Default inventory valuation methods are defined for:

  • Item and warehouse combinations
  • Item, warehouse, and attribute set combinations

This topic discusses default inventory valuation methods for item and warehouse combinations. For information about default inventory valuation methods for item, warehouse, and attribute set combinations, see Default inventory valuation methods for item, warehouse, and attribute set combinations.

Default inventory valuation methods are set up in the Inventory Valuation Methods (whina1100m000) session. If Product Dimensions is implemented, in this session you must also clear the Valuation by Attribute Set check box to ensure that inventory valuation is not performed by attribute set.

The default inventory valuation methods and the setting of the Valuation by Attribute Set check box are defaulted to the Inventory Valuation Method field and the Valuation by Attribute Set check box, respectively, in the Item Data by Warehouse (whwmd2110s000) session.

Setup

To set up default inventory valuation methods for item and warehouse combinations:

  1. If Product Dimensions is implemented, in the Inventory Valuation Methods (whina1100m000) session, clear the Valuation by Attribute Set check box for item valuation groups linked to items that must not be valuated by attribute set.
  2. Select New View.
  3. In the header section, select a warehouse valuation group.
  4. On the toolbar, select New.
  5. In the lines section of the session, select an item valuation group.
  6. Select default inventory valuation methods of the first, second, or third priority for the selected valuation groups as needed.
  7. Repeat steps 4 - 6 to select more item valuation groups and default inventory valuation methods on the next line.
Note: If you use the Enterprise Modeler Content Pack with LN, consider using the DFI0010 (Valuation Method other than FTP) wizard to set up inventory valuation methods. You can execute this predefined wizard from the Wizards by Project Model (tgwzr4502m000) session after you specified the business function model for your company. See Business function model.

Item and warehouse valuation groups

When you select default inventory valuation methods for an item valuation group and/or a warehouse valuation group, the allowed inventory valuation method with the highest priority becomes the default inventory valuation method for item and warehouse combinations with matching valuation groups.

The most specific defaulting is achieved if you select a combination of item valuation group and warehouse valuation group.

To set up more generic default inventory valuation methods, you can also specify inventory valuation methods for empty warehouse and/or item valuation groups.

To specify inventory valuation methods without a warehouse valuation group or an item valuation group, create a new object and leave the warehouse valuation group and/or inventory valuation group blank.

Items are linked to an item valuation group in the Item Valuation Group field of the Item - Warehousing (whwmd4600m000) session.

Warehouses are linked to warehouse valuation groups in the Warehouse Valuation Group field of the Warehouses (whwmd2500m000) session.

Priorities and allowed inventory valuation methods

Each inventory valuation method is prioritized.

The allowed inventory valuation method with the highest priority becomes the default inventory valuation method for items linked to the specified item valuation group and stored in a warehouse linked to the specified warehouse valuation group.

Example

Priority Method
1 Lot pricing
2 Serial pricing
3 FIFO

If, for an item, lot pricing and serial pricing are:

  • Allowed, the default method is lot pricing.
  • Not allowed, the default method is FIFO because this is the allowed method with the highest priority.

Valuation by warehouse or warehouse valuation group for MAUC

In the Inventory Valuation Methods (whina1100m000) session, if you select valuation method Moving Average Unit Cost (MAUC) for priority 1, 2, or 3, you can specify that the MAUC is calculated by warehouse or by warehouse valuation group.

If you select the Valuation by Warehouse Valuation Group check box check box for any of the priorities, the Moving Average Unit Cost (MAUC) is calculated integrally for all warehouses of the selected warehouse valuation group. If the check box is cleared, the Moving Average Unit Cost (MAUC) is only calculated for the individual warehouse in which the item is stored.

Lot price and serial price

In the Item - Warehousing (whwmd4500m000) session, you can specify whether inventory valuation methods Lot Price (Lot) and Serial Price (Serial) are allowed by toggling the Lot Price and the Serial Price check boxes. The other inventory valuation methods are always allowed.

How the default inventory valuation method is determined

To determine the default inventory valuation method for an item and warehouse combination, LN looks in the Inventory Valuation Methods (whina1100m000) session for inventory valuation methods whose:

  1. Item valuation group has the Valuation by Attribute Set check box cleared for Product Dimensions controlled items.

    If this check box is selected, the default inventory valuation methods are defined in the Dimensions Inventory Valuation Methods (whina1105m000) session. For details, see Default inventory valuation methods for item, warehouse, and attribute set combinations.

  2. Warehouse and item valuation groups match those of the warehouse and the item.
  3. Item valuation group matches the item valuation group of the item and whose warehouse valuation group is empty.
  4. Warehouse valuation group matches the warehouse valuation group of the warehouse and whose item valuation group is empty.
  5. Warehouse valuation group and item valuation group are both empty.
  6. Allowed inventory valuation method with the highest priority.