Avarege cost from P4111 don't match with P4105

[brunosan88]

Average cost from P4111 doesn't match with P4105

Hello! Good Morning! My name is Bruno and a have this doubt:

We have some items that the avarege cost from P4111 - Cardex doesn't match with average cost from P4105 - Acess to Item Costs. From day to night some items had a high of, say, 50 cents for no apparent reason. Has anyone ever experienced this?

Thank you,

Bruno Santos

 

[brunosan88]

The problem was an internal business customization.

 

[Olavo Henrique Dias]

Even though you said the problem was due to an internal customization, another catch with the standard implementation of average cost is that it gets a little bit crazy when the inventory goes negative.

 

[ajit_nadgouda]

Even though you said the problem was due to an internal customization, another catch with the standard implementation of average cost is that it gets a little bit crazy when the inventory goes negative.

You should not have a processing options set up wherein the inventory is allowed to go negative.

 

[Olavo Henrique Dias]

You should not have a processing options set up wherein the inventory is allowed to go negative.

I agree, but sometimes people configure it differently (and that causes issues).

In fact I've seen companies where they don't care if the inventory goes negative (especially to not stop shipping) because they know the finished goods will show up on inventory during the day. On those cases, it's nearly impossible to use the vanilla average cost in my opinion.

 

[Larry_Jones]

Exactly Olavo.
You shouldn't stop all your processes because a PO Receipt or WO Completion hasn't been recorded yet.
Average Cost has a lot of issues with it which is why Standard Cost is a preferred solution in many cases.

 

[ajit_nadgouda]

I agree, but sometimes people configure it differently (and that causes issues).

In fact I've seen companies where they don't care if the inventory goes negative (especially to not stop shipping) because they know the finished goods will show up on inventory during the day. On those cases, it's nearly impossible to use the vanilla average cost in my opinion.

Inventory should not be allowed to go negative because nobody takes the responsibility of that. Its like allowing traffic to move in any direction and then expecting people to follow on their own. Not all will agree to follow rules. Some will always break and then others will follow naturally, since they have no way to go.

You need not stop operations. If there is no stock, Inventory Adjustment (IA) can be created by some super user and then after your PO Receipt or WO is done, the IA document can be voided.