Bula Vinaka Team

Further to our meeting this afternoon, 20/04/2017,  between Sanjeet, Vineet, Sanjay, Alvis and Rashna, relating to cost calculation on Inventory Valuation Report, highlighted below are key factors which has been overlooked when adding the new costing method on this report:

1. In all prior versions, cost displayed on this Inventory Valuation report was based on the Inventory costing method set at Inventory Master file and its corresponding cost set at each individual product. With this new version, we have removed this privilege from the users. If users wants to value all inventory at Standard Cost or Last Cost, they will no longer be able to do so.
2. Link Inventory Management does not support the movement of Inventory based on FIFI method thus defeats the purpose of having it on just one report.
3. The whole significance have the cost changed in this report as per case 8430 was to align Link Cost at Valuation report to display average cost at a prior date so that it can tie with Jiwa Inventory Valuation. This has been an ongoing issue at XXXXX for the past 3 years ever since our software was implemented, Link Inventory and Jiwa had never tied. The below scenario displays what is required from this report.

Figure 1.1

1. If user generates the Inventory Valuation Report for period 201701 for item HOT015 based on the above setup, system should display 

• Instock as 170
• Unit Cost as $0.6011
• Total Cost as $103.89

• Instock as 370
• Unit Cost as $0.4970
• Total Cost as $183.89

Figure 1.2

Hi Vineet,

We have changed the formula for valuation report to sum the cost as shown in the movement report.

This implies that the cost calculated in the valuation report will match the inventory stock and average cost for the current period.

Please test this over multiple periods using demo database.

Hi Alvis

I have tested this without replication and the report ties as per my test plan after performing all transactions. Both Jiwa and Link. Rashna seems to have broken this using replication setup. We will need to test this using replication.

My test snapshots below:

Figure 1.1 Link Valuation 

Figure 1.2 Jiwa Inventory

I will set this up with Rashna today and see if we can break this

Vineet

Hi Alvis

The steps as per the case was performed using replication. Purchases was done at HQ and sales from Branches. This was also successful. Below are the snaps of Inventory Movement for both periods together with Jiwa Comparison.

Figure 1.1 Inventory Movement in Link with HQ purchase and Jiwa Sales.

Figure 1.2 Inventory Valuation Report for Period 201701.

Figure 1.3 Jiwa General Ledger as at 31/01/2017

February 2017 Transactions

Figure 1.4  Inventory Movement in Link with HQ purchase and Jiwa Sales for Feb 2017

Figure 1.5 Inventory Valuation Report for Period 201702.

Figure 1.7 Jiwa General Ledger as at 28/02/2017