Business Scenario:
Companies using valuation methods that require closing processes at the end of the period.
Problem:
Issues arise during positive warehouse counts (material found) or customer returns without traceable original sales invoices. In these cases, the material is entered into the warehouse at the default value set in its item card. Currently, the only way to automate the update of this value is by checking the "latest cost price" option, which sets the value based on the last purchase invoice or latest production update. This solution is often unsuitable for scenarios with multiple suppliers or highly variable production costs.
Clients typically request that the system maintain the warehouse's average price in these cases, so these movements do not alter the warehouse price.
Proposed Solution:
The solution is simple. In the "BOM calculation" function, when performed by calculation group, there is an option to use the inventory price as the base calculation. Currently, this option is limited to serving as the base price for another item and cannot be calculated for itself. The proposed solution is to update the version, execute the calculation option, and add an inventory parameter (currently limited to production and purchase) to define the cost price of the products. Activating the "price model" option would allow selection of "inventory price," letting the system use the inventory price of the items as the cost price.
The complete procedure would be as follows:
- At the end of the period, execute the closing process to update the cost prices of all products in stock.
- After this process, run the calculation in a specific version to record and then update these prices in the product cards.
Benefits:
During the next period, any positive movement without an assigned cost (e.g., positive count, customer return) will have the system assign the inventory price the product had at the beginning of the period, preventing any cost deviations. This procedure is more accepted in audits than using the latest price in the scenarios previously mentioned. Additionally, the company would have a record of the inventory prices logged in the system, facilitating statistical analysis of price trends.