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Cost per unit used to calculate cost of sales

gbelcher

Member
Has anyone solved this problem? If so can you give me some insight?

I have a client that has asked if I can correct the weight average cost (the dollar cost per unit used to calculate cost of sales). Having JDE calculate the weighted average cost correctly would give my client the correct cost of sales needed for accounting/reporting and flexibility in the order of processing purchases/sales. My Client’s business model requires that inventory on hand in JDE will be less than zero at times, and this fact is one source of the incorrect calculation of weighted average cost.


Overview: Weighted average cost for an item at a branch plant should match the detailed entries in the F4111 file. They want the following formula to hold in JDE even when the QuantityOnHand < 0.

WeightedAverageCost = (QuantityOnHand * CurrentWeightedAverageCost + TransactionQuantity * TransactionUnitCost) /
(QuantityOnHand + TransactionQuantity),

i.e.,

F4105.COUNCS = (F41021.LIPQOH * F4105.COUNCS
+ F4111.ILTRQT * F4111.ILUNCS) /
(F41021.LIPQOH + F4111.ILTRQT)

If F41021.LIPQOH + F4111.ILTRQT = 0 then set F4105.COUNCS = 0.

It will be necessary for you to determine the relationship between the F4111, F43121, F4105, and the P4312. Right now:
A. They know that when the inventory on hand goes below zero for any purchasing transaction, the formula above does not hold true.
B. They think the COUNCS value is calculated from the entries in the F43121 not the entries in the F4111, but these two tables should be consistent. (F43121.PRAREC should equal F4111.ILPAID for PRDOC = ILDOC, PRDCT = ILDCT)




Mark Belcher

Mark Wizz, Inc.
mobile 713.725.83.95
 

vasu

Member
Which is the business model which requires the on-hand quantity to be less
than 0. I think the issue might be that the sales would like to sell the
product before even it is receipted in the system. Is this the case then
this should not happen.


At 11-04-01, you wrote:
 

gbelcher

Member
Unfortunate I have several clients that sale a product before they actually have it in stock. This also causes the PO to calculate cost incorrectly. Any suggestion or do you know of any mods to help this type of client?

Mark Belcher

Mark Wizz, Inc.
mobile 713.725.83.95
 
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