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<< Click to Display Table of Contents >> IVOVRV Inventory Overview |
  
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IVOVRV Inventory Overview
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<< Click to Display Table of Contents >> IVOVRV Inventory Overview |
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One inventory product file can be shared by multiple companies within a corporate database structure. This is controlled within the Company Links section of the Inventory Options screen. One company structure, this would generally be a non trading company, would hold the inventory files. This company would be used to maintain the inventory files and would have the Full Price / Location Maintenance set. This setting is important as it is required to ensure that when a product code, category or sub category is changed all associated location records are also maintained. This setting also allows pricing records for all companies to be maintained centrally from this company structure.
Stock location and pricing records are held within each trading companies. Company pricing records can be maintained by individual companies.
With one inventory file being shared it is important that the appropriate user rights are applied. Generally access to inventory maintenance screens would be denied within the trading companies. All maintenance should only be from within the company that holds the inventory files and tables. The trading companies should be able to create new products via the Create Standard Products and Create Defined Products screens.
Product Group Definitions
Inventory Items
| • | Inventory items track stock on hand quantities (including on purchase orders and |
sales orders) and moving average costs.
| • | Costs can be based on Last Cost, Moving Average Cost or Standard Cost. |
| • | Transaction movements (IVTRN) and monthly summary records (IVPBA) are maintained. |
| • | Monthly sales and purchase history is maintained. |
| • | Price changes are tracked. |
Calculation Of Moving Average Cost
Entering stock receipts - For inventory items, if the current quantity on hand is zero or minus, the moving average cost will be changed to the item cost of the stock receipt (APRECPT) or purchase order (APNIPO). The user is asked to confirm that the unit cost value is correct.
A moving average cost is maintained for all inventory items even when the product group costing method is Last Cost or Standard.
For Cost Of Sales, the product group costing method is used.
Using Moving Average Cost For Costing
Cost of sale adjustments are made when the current stock on hand quantity is zero or negative in the following circumstances:
| 1. | When A Quantity Is Receipted |
An adjustment is made to cost of sales for the difference between the previous and current item costs.
Transaction
Qty |
Value |
QOH |
M.AvgCost |
Value |
|
REC |
10 |
62.50 |
6 |
6.25 |
37.50 |
ONHand |
-4 |
7.30 |
-29.20 |
Cost of sales adjustment calculation:
$7.30 - $6.25 = $1.05 x 4 = $4.20
| 2. | Stock Receipt Cost Change Only |
The unit cost change is applied based on the current stock on hand quantity. That is, if the current SOH quantity is less than the stock receipt quantity, the unit cost change is applied to the current SOH quantity, and the cost difference is charged to COS Adjustment.
If the current stock on hand is zero, the full cost change is charged to COS Adjustment, and the Moving Average Unit Cost of the item (IVTRN record) is updated to the unit cost change.
Non Inventory Items
| • | Non inventory items do not track stock on hand quantities or moving average costs. |
| • | Costs can be based on Last Cost or Standard Cost. |
| • | When using the PUORDER and APRECPT screens, transaction movements (IVTRN) are created to track On Purchase Order quantities. |
| • | Monthly sales and purchase history is maintained. |
| • | Price changes are tracked. |