Question

Unit Cost in Inventory Value Per Period

  • 23 May 2023
  • 6 replies
  • 285 views
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  • Nisha
  • Do Gooder (Partner)
  • 4 replies

Hi all,

One of our clients has an issue in the unit cost calculation of inventory parts in the inventory value per period. Please see the screenshot below.

There seems to be a value for quantities that are zero. And the Unit cost seems to be the same as the total inventory value  for these parts.

Any reason why this happens?

Your assistance is highly appreciated.

Thank you,

Nisha

6 replies

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Hi @Nisha,

Simply Inventory value per period window denotes the summary of inventory transactions history (M1 & M3 transactions) for each part. If there are values for parts which doesn’t have quantities, it will create ‘ROUNDIFF’ transactions when you perform ‘Aggerate Inventory Transactions per period’ process. You may execute the process till end of month and see whether ROUNDIFF transactions created for these parts. If it is still not I think its better to contact IFS support team.

Best Regards

Narmada 

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Hi @Narmada,

Thank you for your explanation. 

Is there any way to double check the value of the "ROUNDIFF” transaction? 

Best Regards,

Nisha

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Hi @Nisha,

ROUNDIFF transactions are available in inventory transactions history window. 

Best Regards

Narmada

 

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Hi @Narmada,

Thank you.

But just to get it cleared. I have shown below the value of the highlighted inventory part in the inventory value per period window. If I take the inventory transaction history for the same period I get a separate value where there has been a scrapping in inventory as well (See the second screenshot). 

 

 

By subtracting the value in the inventory value per period window from the value in the inventory transactions history (Before scrapping). I am able to arrive at the variance value shown in the total inventory value column for the part in March 2023. Is this how it is calculated? However, there are no ROUNDIFF transactions in the inventory transaction history window.

If you can, kindly let me know how the unit cost of the item is calculated in the inventory value per period window? I want to know how the system arrives at 199.81 for the part in the inventory value per period window. The company uses standard cost as the inventory valuation method. The unit cost in the cost tab of inventory part window shows the cost taken for the calculation in the inventory transaction history window. Just want to know how the total inventory value or unit cost is calculated in the inventory value per period window. 

I highly appreciate your assistance.

Best Regards,

Nisha

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Hi @Nisha,

Kindly refer below screen preview which I extracted from e-learning material relating to your quarry on ROUNDIFF transactions. Your part may have higher inactive days. 

 

And I think below explanation in help text clarify your quarry relating to the Total inventory value and unit cost value on ‘Inventory Value Per Period window.

Total Inventory Value
The total inventory value for the specified part. It is calculated as the sum of the posted amounts for all transactions until the specified period. Each transaction is rounded according to the number of decimals in amount specified for the applicable transaction currency, where the maximum decimal places allowed are two.

 

Unit Cost
The calculated inventory value per unit. This is taken as: (Total Inventory Value) / (Quantity).

 

Hope I answered all your quarries. 

 

Best Regards

Narmada

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@Narmada,

Thanks a lot for your support.

Best regards,

Nisha

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