Anyone encounter problem on Average Cost

remussmc

Member
Hi All,

Would like to know if anyone encoutner problem where related to Average Cost... we have two and consider quite serious one, but RL can't provide us any solution :

1. Weighted Average Cost shown strange figure.

When we issue item ABC, where it been configured using Cost Method Weighed Average Cost, it shown strange figure where no one know where this figure came from.

We check on P4105 (Item Cost Revision), item ABC shown $1.40 at Weighted Average Cost, but the issue trancation in F4111 shown $1.10.

This happen once in a full moon, and we can troubleshoot the problem, and just enter the database and patch it using SQL ISQL_W

2. Averaga Cost calculate incorrectly, after a revise an item received.

For example, we purchase item ABC in $1.00 for 10 unit, then later we purchase item ABC in $2.00 for 10 unit. The total 20 unit shown average cost of $1.50 per unit.

But then when we perform a revise on item received of 2nd batch (10 unit of $2.00), the system calculate the balance 10 with cost of $1.50, where it should be $1.00, right ?

Hope that you guys can help, as we really can't solve these issues.

Best Regards !!



Remus Shai
Yee Lee Corporation Bhd
OW B732.1, NT4.0, SQL 6.5,
 

remussmc

Member
Hi All

As refer to my previous post, I'm sorry that my question 2 have post incompletely.... I mean after the revise, the balance 10 unit still remain unit cost of $1.50, where it suppose to be $1.00.

Thanks !!

Remus Shai
Yee Lee Corporation Bhd
OW B732.1, NT4.0, SQL 6.5,
 
Hi Remus

In reply to 2nd point

The average cost calculation looks ok to me ,as that's how it is calculated
,maybe i missed some thing !


Assuming that online avg. cost is switched on in the system constants and
cost method is set to 02 at item branch level and in branch plant constants
as well.

your example

For example, we purchase item ABC in $1.00 for 10 unit, then later we
purchase item ABC in $2.00 for 10 unit. The total 20 unit shown average cost
of $1.50 per unit.

But then when we perform a revise on item received of 2nd batch (10 unit of
$2.00), the system calculate the balance 10 with cost of $1.50, where it
should be $1.00, right ?

taking your example further
presently you have qty 20 @ $1.5

qty 10 is issued avg. cost 1.5

qty available 10 @ $1.5

you receive 10 more at $2.0

now your wt. avg. cost will be (10*1.5+10*2)/20 = $1.75

next you receive 10 more @ $2.0

avg.cost = (1.75*20+10*2)/30 = $ 1.8333


now issues will happen at 1.8333 if your cost method is 02

the list of programmes effecting average cost calculation could be checked
at UDC 40/AV .


regards

Sarab
 

remussmc

Member
Hi Sarab,

First of all, thanks for your reply.

But as refer to your example, it did not related to Revise Receipt at all, and our problem are occur when perform a Revise Receipt.

I found same issue was lodged in Knowledge Garden with SAR 2916792, and I've ask my account people to check on this.

Regards

Remus Shai
Yee Lee Corporation Bhd
OW B732.1, NT4.0, SQL 6.5,
 
Call Orchestrations From Excel – The Easy Way to Make the Orchestrator Work for You.

Guest

Guest
Your second problem sounds like a bug. If Denver says works as designed,
then you may want to consider running Advanced Stock Valuation, which is a
separate module. It does LIFO, FIFO or Average costing. If you decide to
look at it, I have some more stuff I can send you about it.

Andy Klee

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

www.JDETips.com
 

remussmc

Member
Re: RE: Anyone encounter problem on Average Cost

Hi Andy,

Yes, We're interested on the solution that you mentioned, you can send those info to me at [email protected]

Thanks in advanced !

Regards

Remus Shai
Yee Lee Corporation Bhd
OW B732.1, NT4.0, SQL 6.5,
 

Luke_Wong

Member
RE: RE: Anyone encounter problem on Average Cost

Remus,

I am interested in your question and the solutions that have been suggested.
Unfortunately I have either deleted them or not received them.

Thanks

Luke Wong
Systems Development Manager
PACCAR Australia
 
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