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Lot Numbering & FIFO Valuation

ramnarane

Member
Hi,

We are implementing Xe and would like feedback about the follwing -

OneWorld currently has numeric lot numbering, but the existing customer system uses an alphanumeric lot numbering. What kinda modification would be required to incorporate alphanumeric lot numbering in the OneWorld system?

They also use FIFO valuation. However we also need to consider the expiry date . Standard valuation available in OneWorld is weighted avg; Is it necessary to implement Advanced Stk Valuation - any suggestions.

thanks
 
Hello,

Stock valuation method.
As far as I know, “in front” of fiscal authority, is mandatory to use the same method for costing and for stock valuation. In this condition you can’t use FIFO method as a costing method because this method simply isn’t available in One Word Xe.
Anyway, OneWorld Xe, through Advanced Stock Valuation system, offers the possibility to evaluate your stock using FIFO method, but only for analysis purposes (i.e. Valuation using Weighted Avg method vs. Valuation with FIFO method).
Hope this helps.
Regards,
Gabriel
 
Hi,

There are potentially a couple of ways to handle this. If you set your cost method to weighted average, turn lot processing on, and then set your cost level in the item master/item branch records to level 3 (item/branch/location/lot) you will store the cost for each of the lots that you receive. Then you could set your commitment preferences to select the lot with the most current expiration date so the system would commit the newest lots first, this might handle it. Also, you could use Adv. Stock Valuation. This allows you to re-value your inventory at period end using a costing valuation of your choice. When you run the update for Adv. Stock valuation at the end of the process, it will generate journal entries to your inventory and cogs accounts to make the necessary dollar adjustments in the ledger to keep your inventory values in sync. Off hand, I would consider investigating the Adv. Stock valuation method. Setting up lot processing and driving your cost to the lot level tends to get a little tricky and can add some time to your reconcilliation.

As for the alpha-numeric lot number, have you considered using the memo lot field?



Mark Wilson
Innovative ERP Solutions
mwilson5734@charter.net
Distribution - OneWorld Xe, B7332, B733, B732, World - A73
 
Using next numbers to determine the lot number will limit you to a numeric
calculated value. The lot number field can be alphanumeric if entered, so if
you are bringing it from another system alphanumeric is ok.

When you say FIFO are you talking about a cost associated with each lot? If
so, by using Inventory Cost Level (on Item Master) set to 3 the weighted
average will be on the lot only, which in effect costs the part by lot.

 
 
Dale
 
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