Enable inventory valuation

The field indicates whether detailed lot number information per item or warehouse and lot number should be printed on the inventory valuation proposal for lot-controlled items.

If this check box is not selected, only information per item or warehouse is printed. This means that the proposal is generated faster.

The field indicates which inventory system is used for calculating the acquisition cost of the inventory.

The acquisition cost is calculated for all three available inventory systems such as FIFO, LIFO, and average. The value from the system you have selected is compared to the net sales value and the replacement cost. The lowest of these three values is then selected automatically as the inventory value.

These are the valid alternatives:

1 = FIFO; 2 = LIFO; 3 = Average.

The field indicates the sequence in which the net sales value is searched.

These are the valid alternatives:

• 1 = From the price list
• 2 = From the item's basic data
• 3 = From preferred acquisition cost method.

For example, 21 means that the price is first searched for in the item file. If there is no value there, the search continues in the specified price list.

The field indicates how the net sales value for inventory valuation is determined. The item's inventory value is then calculated as the product of the net sales value and price share.

The price list specified must be expressed in local currency without a customer number.

The field indicates how the replacement cost is defined, with or without applying a purchase costing model.

These are the valid alternatives:

• 1 = Purchase price from the agreement file
• 2 = Purchase price from the item master file
• 3 = Average cost
• 4 = Price on the latest invoice in the purchasing statistics that is recorded on the inventory valuation date
• 5 = The lowest of alternatives 3 and 4, lowest of average cost and price on latest invoice. If one of these values is 0, the other value is selected.
• 6 = Replacement cost is to be set equal to a specific costing type and subtotal (defined below). This alternative should be used for items without a purchase price.

For example, 21 means first search for the price in the item master file. If no value is found there, continue the search in the agreement file. If a price then is found in this file, it is automatically adjusted by the connected purchase costing model, for example, 10% overhead is added for freight charges.

The field indicates one of up to nine types of product costing. Costing rates and markups are specified for each costing type and date.

For example, costing type 1 is current product costing which is regularly recalculated. Costing type 2 is simulated product costing, and costing type 3 is product costing using standard costs.

The field indicates the start and end period in a bucket from which depreciation of the net sales value is calculated.

Depreciation is taken for products that have been in stock or can be in stock for a long time. The value is calculated by forecasting future needs based on historic consumption.

Historic consumption is grouped in buckets, or time zones. Each bucket can contain one or several periods. Depreciation is set as a percentage for each bucket and demand type. The demand types used in the calculation are defined in 'Settings – Cost Accounting' (CAS900).

Depreciation for a bucket is calculated as follows: (quantity per bucket) x (unit price) x (percentage per bucket).

The unit price is retrieved from the price list specified, the item's basic data, or is calculated by dividing the acquisition cost with the quantity, depending on the search path.

The values retrieved are used to estimate the net sales value after depreciation for a corresponding future bucket in (CAS180). This periodization is retrieved from the period type specified for Material & Production Management (MPM) in 'Company. Connect Division' (MNS100/F), and not from the financial system.

For example, if a periodization of 12 months is used for the financial system but 52 weeks is used for MPM, start period 2 in this case refers to week 2, not month 2.