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Inventory Revaluation - Weighted Average

  • January 30, 2023
  • 6 replies
  • 739 views

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  • Do Gooder (Partner)
  • 11 replies

How is it possible to revalue the weighted Average costed part?

Imagine a scenario where the inventory part is set up at Weighted average and made several receipts. The part has been in inventory for several years without any recent transactions. Now the business understands the value of the stock has gone down. Is there a way to revalue the inventory so that the previous value will change and the lost value charged against PnL. 

This is possible under standard cost.. but the concern is how to do this under Weighted average method.

Best answer by Richard Owen

Hi,

Yes, you should be able to do this in IFS Cloud.

This is the equivalent example that I just created

 

 

 

I hope that this helps.

6 replies

Richard Owen
Superhero (Employee)
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  • Superhero (Employee)
  • 218 replies
  • January 31, 2023

Hi,

This can be done using the ‘Modify Level Cost Details’ functionality on the Inventory Part.

The dialog box will display the current (‘Old Cost’) Weighted Average value for the items in stock. 

You can enter a ‘New Cost’ value and then press OK to update it

The Inventory Revaluation Transaction can be seen in the Inventory Transactions History screen.

 

I hope that this helps.


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  • Author
  • Do Gooder (Partner)
  • 11 replies
  • February 2, 2023

Hi Richard,

 

Thank you for this. Isn’t this function available in Cloud?

Thanks,

Sandy


Richard Owen
Superhero (Employee)
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  • Superhero (Employee)
  • 218 replies
  • Answer
  • February 2, 2023

Hi,

Yes, you should be able to do this in IFS Cloud.

This is the equivalent example that I just created

 

 

 

I hope that this helps.


Forum|alt.badge.img+6
  • Author
  • Do Gooder (Partner)
  • 11 replies
  • February 2, 2023

Richard,

Thank you very much. I looked at a part with an incorrect inventory valuation method. BTW I didn’t see a revaluation possibility for the FIFO part. Does that mean FIFO parts should not be revalued?

Thanks a lot for your help.


Richard Owen
Superhero (Employee)
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  • Superhero (Employee)
  • 218 replies
  • February 3, 2023

Hi Sandy,

My understanding is that the quantities and costs associated with FIFO parts are stored in a FIFO ‘pipe’ and the system will use these values for any transactions which take place.

This can be seen in the FIFO/LIFO Analysis screen

 

 

There doesn’t appear to be any option to revalue these items. 

Perhaps other IFS Community members have some experiences to share on this topic?

Best Regards,

Richard.

 


ashenfdo
Sidekick (Customer)
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  • Sidekick (Customer)
  • 78 replies
  • January 24, 2024

Thanks in advance for the options you have provided here. is there a possibility to do this re valuation for a multiple no of parts? Using a percentage?