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Advanced Stock Valuation

I am currently trying to implement the Adv Stock Val module and have run into a problem that I do not think is unique. My client has multiple depots (branches), but into only one of them do they directly purchase from suppliers. Stock for all other depots is sourced from this terminal depot by way of depot-to-depot transfers (transfer orders).

They wish to value stock using FIFO Detail by Branch, and the inventory costing method used is Memo (03).

When the terminal depot is revalued, the incoming costs in the item ledger have the real costs from the supplier. Therefore the outgoing sales & transfers are correctly revalued on a FIFO basis.

When the outlying depot is revalued, the incoming costs remain at the memo cost and do not transfer from the terminal depot's FIFO layers.

My question is - am I doing something wrong ? How have others handled the situation ?

EG. Memo Cost = $0.14 per Litre
Purchase 10000 LT from supplier at $0.17 per Litre into depot "TERMINAL".
Sell 1000 LT from depot "TERMINAL".
----> Item ledger records COGS at $0.14 per Litre.
Transfer 2000 LT from depot "TERMINAL" to depot "REMOTE".
----> Item ledger records shipment from "TERMINAL" at $0.14 per litre and receipt into "REMOTE" at $0.14 per litre.
Sell 1000 LT from depot "REMOTE".
----> Item ledger records shipment from "REMOTE" at $0.14 per litre

Stock Valuation period build is run at this is how "TERMINAL" looks

Incomings------------> 10000 LT at $0.17 = $1700
Outgoings------------> 3000 LT at $0.14 = $420 (1000LT sold, 2000LT xferred)
Closing Inventory----> 7000 LT at $0.17 = $1190 ($1700 - $510).
Cost of Goods Sold---> = $510
COGS Adjustment------> = $90
Inventory Adjustment-> = $-90

COGS & Inventory have been correctly revalued from the memo cost of $0.14 to the purchase price of $0.17.

This is how remote looks

Incomings------------> 2000 LT at 0.14 = 280
Outgoings------------> 1000 LT at 0.14 = 140
Closing Inventory----> 1000 LT at 0.14 = 140
Cost of Goods Sold---> = 140
COGS Adjustment------> = 0
Inventory Adjustment-> = 0

All the transactions remain at the memo cost of 0.14. But the incomings and outgoings were ultimately sourced from a purchase receipt at 0.17 per litre !





Alan Lawlor
J.D.Edwards Certified Professional
Software Resources
 
G

Guest

Guest
Alan, that's the way Stock Valuation works. It uses what it finds in the
item ledger as the basis for the extract to the stock valuation files.
Maybe you can run a report and do some $only transactions to the item ledger
to move some dollars around from one branch to another before you run the
stock valuation process.

Wish there was better news!


Andy Klee

Klee Associates, Inc.
J.D. Edwards Certified Professional
Phone: 970.856.4811
Cellular: 303.591.7344

www.JDETips.com
 
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