Difference between Inventory Valuation Methods...

Hi
Can any say how does the 3 Inventory Valuation Methods Suits for the business Process...names FIFO for what kind of Businesses and Standard & Moving Average so on...
If any links to learn ...please let me know it....
Thanks

Hi Gopi,
Check below:
Moving Average– the method is based on the calculation of an average cost for the item in each sales and purchasing transaction.
Standard– the standard pricing system permits the selection of a fixed price, which is then used for all transactions.
FIFO– an additional perpetual inventory system, in which goods purchased first are sold first, regardless of the actual goods flow.
Hope this helps
Regards::::
Atul Chakraborty

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Difference between All valuation methods

Hiii Guru's,
Can anybody tell me the actual difference between the inventory valuation methods given in B1 - Standard / Moving / FIFO ... Actually I want to know their impact in each case if I maintain my masters at item group level. so how it will affect my accounts... preferrably give examples in each case to understand the different scenario...
Thanks in advance. I will assign points for helpful asnwers.
Regards,
Abhishek

Hi,
Standard :-
This valuation method means the cost of an item will be standard. It never change under any circumstanses. The Only way to change the cost is to Inventory Revaluation.
Eg, Lets consider Item A
Valuation Method : Standard
Value : $56.00
The above value will be taken to any calculation.
Moving Average :-
This means a valuation takes place based on the corresponding quantities and prices for each goods receipt and issue, and the moving average price is updated accordingly. The valuation price is calculated as the quantity multiplied by the average price.
Eg, Let's Consider Item A
Valuation Method : Moving Average
Value : $56.00
If we purchase the item for $60.00 then the item cost will be changed according to the purchase value. In this Moving Average Value will be th item cost.
FIFO :-
Under this valuation method, the system assumes that the items that entered the warehouse first will also exit first. This means goods issues are valuated with the prices that are valid for the first goods receipts.
Eg., Let's consider Item A,
Valuation Method : FIFO
Value : $56.00
The current value of the item is $56.00. If we purchase the item for $60.00 then the item will have two values, ie., items which bought first with $56 and currently bought with $60.00. The item issue will be done in FIFO manner. (ie., items with $56.00 value will be issued first and then stock with $60.00 will be taken)
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jverd wrote:
The first two answers were also correct.Also the blocked message, quoted here for posterity:
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Methods are defined by Java whereas functions are not. ~

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Dear Sir,
Here I am using moving average as inventory valuation method at one of my client. I want to know that in SAP Business One, in case of F.G. valuation we can only get the valuation of Raw Material and not the direct expenses cost.
Can you please tell me how should i put the Direct Expense Cost (e.g. Labor Rate) in F.G. inventory Valuation?
Please reply ASAP.
Thanks & Regards
SS

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Only the raw material cost will be added to the Cost of the FG based on the Quantity and price in the BOM.
Ex:
To make Parent Item FG 1 nos , you required 2 nos of Child Item of Rs 10 each,
Create Bom for the same and refresh the cost of the FG (will find a refresh arrow in the Bottom of the BOM -Screen)
Once you Issue child parts to the respective production order and make a receipt for the Parent Item the cost of the FG will be posted as RS 20
If you want to add the labor cost to the FG there is no direct provision to add the cost in SBO, we have give a work around only as follows.
Create a Service Item ex.Labor Cost and give the Standard cost for that Item in inventory tab For example for Rs 200/Hr
Now add the Service item (Labor Cost) in the Bill of material and in the Quantity field give the Time for the labor required is if the Labor Time taken is 30 min to make 1 FG give 0.5 ie (convert the cycle time to Hours and give the decimal value)
then refresh the BOM,
Now the cost of the FG will be 20+100( labor cost) = 120
The above method can be used only if you have determined a standard time of labor to manufacture,
With regards,
G.Eshvanth Singh

Inventory Valuation Method

HI,
My client has the requirement like comparison of Item with different valuation method in a single report.
Is there any provision to do this.
Please suggest
Regards,
Vikram

Dear Vikram,
Inventory Valuation Method is inteneded as a managerial report to check what-if scenarios. For instance, you can see what happens if you value an item based on a different costing method. This report is not intended to be used as report for auditing. For audititng purposes use the Inventory Audit Report.
You can use any standard method for the inventory valuation. You can also define various criteria to restrict the selection for inventory valuation.
Goto Inventory->Inventory Report->Inventory Valuation Report.
You will have to export to excel and consolidate the results.
Please note It can be run for other costing methods than actually selected for an item. For the selected method of valuation for an item, please run Inventory Audit Report. Exporting will work for you.
Regards
Preety Goel
SAP Business One Forums Team

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And you can even attach these to a person.
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Vignesh

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Integer output=(Integer)mthd.invoke(new RunMthdRef(),input);
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hi
1.
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Warehouse Management Processes cover warehouse-internal movements and storage of materials.
2.
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3.
While Inventory Management manages the stocks by quantity and value, the Warehouse Management component reflects the special structure of a warehouse, and monitors the allocation of the storage bins and any transfer transactions in the warehouse.
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thanks & regards
Ruban

Hi Ruban,
The main difference between the two is in lsmw we can view the code status at any time just by coming to prvious steps, but whereas in batch input method unless the recording is finished we cant view the code.
second diff is tht we need to do lot of coding in batch inptu whereas here in lsmw we need not do much coding and mapping to data.
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sana M...

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Komanduri

Hi......
Please read below.....
Inventory Audit:
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Item
Business partner
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Any one help me to clarify my confusion.
stud s=new stud();
stud s1=new stud();
System.out.println("Equals======>"+s.equals(s1));
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corlettk wrote:
I'm not sure, but I suspect that the later Java compilers might actually generate the same byte code for both versions, i.e. I suspect the compiler has gotten smart enough to devine that && other!=null is a no-op and ignore it... Please could could someone who understands bytecode confirm or repudiate my guess?Don't need deep understanding of bytecode
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C:>javap -v SomeClass
Compiled from "SomeClass.java"
class SomeClass extends java.lang.Object
SourceFile: "SomeClass.java"
minor version: 0
major version: 49
Constant pool:
const #1 = Method       #4.#15; // java/lang/Object."<init>":()V
const #2 = class        #16;    // SomeClass
const #3 = Field        #2.#17; // SomeClass.field:Ljava/lang/Object;
const #4 = class        #18;    // java/lang/Object
const #5 = Asciz        field;
const #6 = Asciz        Ljava/lang/Object;;
const #7 = Asciz        <init>;
const #8 = Asciz        ()V;
const #9 = Asciz        Code;
const #10 = Asciz       LineNumberTable;
const #11 = Asciz       equals;
const #12 = Asciz       (Ljava/lang/Object;)Z;
const #13 = Asciz       SourceFile;
const #14 = Asciz       SomeClass.java;
const #15 = NameAndType #7:#8;// "<init>":()V
const #16 = Asciz       SomeClass;
const #17 = NameAndType #5:#6;// field:Ljava/lang/Object;
const #18 = Asciz       java/lang/Object;
SomeClass();
Code:
   Stack=1, Locals=1, Args_size=1
   0:   aload_0
   1:   invokespecial   #1; //Method java/lang/Object."<init>":()V
   4:   return
LineNumberTable:
   line 1: 0
public boolean equals(java.lang.Object);
Code:
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   1:   instanceof      #2; //class SomeClass
   4:   ifeq    25
   7:   aload_1
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   11: getfield        #3; //Field field:Ljava/lang/Object;
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   15: getfield        #3; //Field field:Ljava/lang/Object;
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   21: iconst_1
   22: goto    26
   25: iconst_0
   26: ireturn
LineNumberTable:
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C:>javap -v SomeClass
Compiled from "SomeClass.java"
class SomeClass extends java.lang.Object
SourceFile: "SomeClass.java"
minor version: 0
major version: 49
Constant pool:
const #1 = Method       #4.#15; // java/lang/Object."<init>":()V
const #2 = class        #16;    // SomeClass
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const #4 = class        #18;    // java/lang/Object
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const #6 = Asciz        Ljava/lang/Object;;
const #7 = Asciz        <init>;
const #8 = Asciz        ()V;
const #9 = Asciz        Code;
const #10 = Asciz       LineNumberTable;
const #11 = Asciz       equals;
const #12 = Asciz       (Ljava/lang/Object;)Z;
const #13 = Asciz       SourceFile;
const #14 = Asciz       SomeClass.java;
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const #16 = Asciz       SomeClass;
const #17 = NameAndType #5:#6;// field:Ljava/lang/Object;
const #18 = Asciz       java/lang/Object;
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   0:   aload_0
   1:   invokespecial   #1; //Method java/lang/Object."<init>":()V
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   18: aload_0
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   22: if_acmpne       29
   25: iconst_1
   26: goto    30
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   30: ireturn
LineNumberTable:
   line 6: 0
}

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