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

Similar Messages

Error in "Inventory Valuation Method using Moving Average"

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

Hi,
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

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

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)
Raja.S

Inventory valuation in SAP IS retail

Hi SAP gurus,
Anybody please help me to configure inventory valuation in SAP IS retail.
I have little knowledge in Joint valuation and split valuation in MM.
May I follow the same procedure for SAP IS retail also or else, help me for the same.
Expecting answers ASAP.
Regards,
Logi

Hi Venu
All of us are aware that the inventory valuation method — such as FIFO, LIFO, or Averaging — has an impact on the business’s profit margin.
I am only aware that the following Standard Functions have not been tested with Articles in SAP Retail:
Plant maintenance (PM)
Subcontracting with generic articles
LIFO and FIFO analysis
Production planning (PP-PI)
Using serial numbers with generic articles
Project System (PS)
The caveat coming out of the fact above is to ensure sure that these functions work correctly in your project.
Still looking for more information on any constraints of using LIFO FIFO for SAP Retail.

Inventory Valuation by FIFO method.

Hi All,
     We need to know if it is possible to get any report where in we can know what would the inventory valuation be if inventory is to be valued by FIFO method. Currently the valuation method is moving average. We need this for year end purpose only. We do not want to post any entries or change the existing valuation of the inventory for any of the items. We only need a simulation report for Inventory valuation by FIFO method. Is there any way we can get such a report??
Thanks,
Pritesh.

Hi,
     Thanks for the quick reply. I have configured FIFO valuation method and tried on the test server. I have the following 2 questions in it:
1) When executing MRF1, there is an error while creating the Batch Input session.
    bdc_close_group, session not opened
      message no. 00330
2) If the session does get created, as per my understanding if the session is processed, system executes the Tcode MR22 in background and postings take place as
Inventory account    -    DR
Revaluation account - CR.
   My doubt is that, will this change the existing valuation of the Inventory ? We do not want to change the existing valuation.
Thanks,
Pritesh.

DRQ: Specific Identification Method for Inventory Valuation

This is a request to incorporate the features of Specific Identification Method (or Actual Cost) of Inventory Valuation for Serial Number / Batch Number controlled items.
Found lots of threads in the Forum regarding this topic, but could not able find out any answer from SAP.
Sometimes back, myself posted the same thread, but got reply that Navision has this features please use that.
Hope SAP Team has enough knowledge about this method of valuation, that is why I am not giving any example.
If require I can provide enough example on this topic.
Thanks & Regards
Anjan Bhowmick

Hi Peter,
This is the same requirement we need in mexico. What do you mean with "Next major releases"?
In other words, this requirement is not going to be consider for next version 8.8?
Waiting for your response.
Elías

JE Passed in case of Standard valuation method in 2007B

Dear All,
I am bit confused---
The scenario is i have done one transaction for A/P invoice.The JE passed in case of A/P invoice & in case of item having valuation method standard & procurement method make is hitting material variance account instead of hitting inventory account since the tax say cst is inventoried.This issue is occurring only in case of standard valuation method.In case of other valuation method the accounting entry is correct, so what might be reasons behind it.
Also, if anyone could provide me sap portal link which will help me out to identify the changes which took place in different PL's.
Regards-
Mona.

Hi Mona ,
The quick thing is to check :
1. What is the standard price of the item
2. Is your GRPO price is difference than AP invoice
Everytime you purchase it will check against your standard price and if it is different it his variance account .
Hope this helps
Bishal

Inventory valuation simulation report

Hi,
I'm having trouble understanding this report. I have attached an image of the selection criteria. Current inventory is valuated using FIFO. How do i interpret the outcome of this report when i choose Moving Average as the valuation method for the two inventory items chosen(DT1L0001 & DTL10002)?
Thanks & Regards
Aziz

Hi,
Your cumulative quantity and same way cumulative values calculated
First transaction quantity = 15        Cumulative quantity = 15
Second transaction          = 10        Cumulative quantity = 25 (15+10)
Third transaction              = -1         Cumulative quantity = 24 (25-1)
Fourth transaction            =   1        Cumulative quantity = 25 (24 +1)
Fifth transaction            =   -1         Cumulative quantity = 24 (25 -1)
Last transaction            =   -1        Cumulative quantity = 23 (24 -1)
The final cumulative quantity is 23. In short, cumulative quantity is calculated from previous values based on transaction its get added or subtracted.
Thanks & Regards,
Nagarajan

OKG3 - Create a new valuation method

Hi All!
Im trying to create a new valuation method by OKG3 without "Result analysis method" and "Cancel
Inventory/Reserves with Status" fields filled out. I need these fields in blank but these fields are mandatory.
Even I change to expert mode its necessary fill out these fields.
Any idea to resolve this issue? Is it necessary to do any previous configuration?
Best regards,
Ricardo Sanerip

Hi,
Please go through this building blocks in order to understand need configuration steps
http://help.sap.com/bp_bblibrary/600/BBLibrary_start.htm
Best regards
Medha

Urgent. [Items - Valuation Method] error when creating documents

I have recently upgraded one of my customers databases to the newest 2005 sp: 01 pl: 45 version
Before that, they were running 2005, but with no service pack.
However, after the upgrade they cannot any longer create salesorders, invoices etc!
They allways get 'Items - Valuation Method' when pressing the add-method.
Every item is checked as Stock Item, but not purchased Item. I cannot change any of this, it seems.
But they do NOT use any logistics, they only use SBO as an invoicing system. And they will not use it for logistics in the future either. 'Response to Release of Stock below the Minimum level' is set to 'Without warning'.
How can I quickly make salesorders/invoices work again? Does anyone know what might have happened during the upgrade?
Help is highly appreciated!
Regards, Runar

Hi Runar,
I realize that this is a very late response, if you have not already logged a message with SAP support you should do that.
When releasing 2005 SP01 a lot of the logic of the Inventory transactions where corrected to avoid inconsistencies. Among these changes were certain settings on Items that could no longer be changed.
Hope it helps.
Jesper

Change of Valuation Method

Dear All
Is it possible to Change the valuation method from FIFO to LIFO or Moving Average Price, when the Stocks are available in factory

Standard to MAP and vice versa are very well explained in the document provided by Ramana on page 31. Thanks Ramana!
As far as the FIFO and LIFO valuation are concerned, the system continues to maintain in standard or MAP, as setup by the price control indicator, S or V. What the system does is, at the period end, finds what would be the value of the closing stock, if FIFO or LIFO is method is followed. It is only relevant to valuation of closing inventory. It is for information purpose, but still if you want to value the inventory on FIFO or LIFO basis, then you can set up the update indicator. If it is done so, then the value proposed by LIFO/FIFO analysis is updated, as if it were a price change.
In OMWE you can parallely maintain both LIFO and FIFO active.

Standard Valuation method in 8.8

Hi Experts,
In the Itme Master Data the Item Cost is greyed out with the Standard Valuation method as soon as transactions is done. Is there any way I can change this standard Cost after transactions is posted?
Thanks,
Marli

Hi Marli,
You may use Inventory Revaluation to revalue the item cost.
Thanks,
Gordon

MM period / Year Closing Activity and inventory Valuation ??

Hallow Experts !
At the time of Period end, we close the Posting Period in Transaction Code - MMPV. So as a Result system opens Next posting period Automatically. (Please Correct if i am wrong). At a time two posting periods are open, Current and previous posting period.
So, while this period close and open activity, The Material Stock valuation is carry forwarded from closing posting period to Opening period Automatically ?
I want to understand the System logic for this inventory valuation carry forward in brief.
Also please explain in brief, Year end activities by Materials Management side for material Valuation ???????
Thanks in Advance !!

Hi,
Before closing a period, you must ensure that all the transactions related to are posted( Examples: GR,IR etc).Once you close the period in MM side, its difficult to post again in that closed period. For more read the SAP notes 487381.
You can check which period is open in MMRV( you can set here back posting allowed or not) and close the period in MMPV.
Initiation of period can be done in MMPI (1st time only) and setting of MM period can be done in OMSY.
Inventory valuation & automatic account posting depends on following T.codes and where is your material valuated (plant level or in co.code level)
1.OMSK: Valuation Class with Account category reference,
2.OMWM: Active Valuation Grouping Code,
3.OMWN: Active Movement type with G/L account,
4.OMWD: Active Valuation Area,
5.OMWB: Active Chart of account,Valuation Grouping Code,Account Grouping Code, Valuation Class and G/L acocounts
Regards,
Biju K

Data Import error - Valuation Method (ODBC -1029)

Hello all, first post on the SCN. I did some search for similar problems, but nothing seemed to help here.
We are using Business One, two different companies and databases. We were at the time of the year to update the price list, so we used the Administration -> Data Import/Export -> Data Import -> Import from Excel.
One company (US only) imports perfectly, but the other database (Canada + US) gives me the following error message on 91 / 1036 entries.
Row Number xxx : [Items - Valuation Method] , 'Field cannot be updated (ODBC -1029)
Since the errors only appears on one of the two databases, I ruled out that the excel sheet we used to be the problem.
The excel sheet only has 4 columns : The item identification, the price list that it needs to update, the price, and the currency (USD or $ for us).
Neither of the two companies use any valuation method. In fact, neither companies have the field at all in Item Master Data, and its grayed out in the Company Details.
We also made a dump of the entire item database, and compared what items were imported successfully and those that generated the error, and while the column Valuation Method either had nothing or A, there was no pattern to it. Some errors had nothing, some had A in it.
I checked for any other differences between items that were imported and the ones with error, and cannot see any visible differences, so all I can think here is that its either an invisible setting when the item was created, or there's some character that is creating a fault somewhere (like an empty space).
One of the topics found on this error message (ODBC -1029) said that we might need to request a script to fix the database, but that topic was back in 2006, I'm not sure if it still applies, 8 years later.
Essentially I ran out of things to try on my end. Now I can only ask to the experts.
Thank you for your time!

The company that has troubles importing does not allow us to change the Valuation Method for each item. The field is missing entirely from the Item Master Data. I included a screenshot.
The field is grayed out in the Company Details, but its set as Moving Average. The other company uses Moving Average by default as well, from the looks of it (the field does appear in Item Master Data, but its grayed out).
We used the same excel sheet to import data in both companies, just need to figure out why its 100% on one side and not on the other side.
Just to be a bit more clear, we cannot select or visualize the Valuation Method on the items that are not getting imported. Its invisible.
When we exported the full list of items, there was no pattern between the items that are not imported and those that are imported properly.
To be clear, the Valuation Method for :
Items that are imported properly are A or blank.
Items that are not imported and generate an error are A or blank.
There is no logic between those that work and those that do not, which is why I can't figure it out on my own.
Thank you!

Inventory Valuation Method

Similar Messages

Maybe you are looking for