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Average Purchase Price Calculation Logic

  • February 19, 2025
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There are topics similar to this title. But I couldn't find the exact answer I wanted.

I am trying to calculate the cost of materials in stock. We are using IFS8 version. 

The Average purchase prices for materials are available in the INVENTORY PART table. 

I know this prices comes from the purchase order lines table. 

  • Average Purchase Price calculation takes only Received/Closed Purchase Order lines.
  • Average Purchase Price calculation takes only for Primary supplier.

But when I take these into consideration, the average price I calculated is still different.

 

Are there any other conditions besides these? For example, is there a date condition? or number of order lines.

 

Do we create the conditions I wrote above ourselves? If so, where are these settings made?

There is page in Inventory=>Financial Control=>Calculate Purchase Cost.

But there is only date option here.

 

Best answer by Michael Kaiser

Hi,

what if you put all PurchaseOrderLines in a FACT_table where you can calculate any part on any range of FROM - TO Date with QTY and PurchasePrices?

We did a “star - schema” in a DWH (MS SQL environment) like this:

 

So your question can be answered any time you want (on a daily base),
Filters on DIM_Part categories like PartGroups etc. or DIM_Supplier (and their groupings)

So you can answer detailled questions like:
Part 4711 from Supplier1 and 2, what was the average price in 2024, in Q2_2024 compared to Q2_2023?

Hope that helps!

All the best.
Michael
 

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Michael Kaiser
Sidekick (Customer)
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Hi,

what if you put all PurchaseOrderLines in a FACT_table where you can calculate any part on any range of FROM - TO Date with QTY and PurchasePrices?

We did a “star - schema” in a DWH (MS SQL environment) like this:

 

So your question can be answered any time you want (on a daily base),
Filters on DIM_Part categories like PartGroups etc. or DIM_Supplier (and their groupings)

So you can answer detailled questions like:
Part 4711 from Supplier1 and 2, what was the average price in 2024, in Q2_2024 compared to Q2_2023?

Hope that helps!

All the best.
Michael
 


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