Topic: Inventory Valuation - Average Cost
|By: Guest||Posted on: Nov 11 2020 at 12:35:13 PM|
Has there been any progress implementing an average cost stock valuation?
|By: Support||Posted on: Nov 12 2020 at 09:12:43 AM|
|Sorry No. The stock valuation uses the default supplier's standard price.|
All previous versions of MiniMRP expected you to manually key in the default cost or import costs from CSV.
But v5 has the option where, if enabled, the most recent purchase price is taken as the default.
But to answer your original question - it's unlikely that we'll ever do the calculation back through historic purchase orders to arrive at an Average. We think it's just too much for a 'Mini' mrp.
|By: Guest||Posted on: Nov 12 2020 at 09:55:27 AM|
|Ok - It's a shame, i was only asking based on your comments in July:--|
There are some updates being done that change the way cost price of items is calculated (ie Average Cost vs most recent). This is mainly for calculating the build cost of assemblies. But taking that a step further it should then be possible to take that average cost into the stock valuation reports.
I'll put this into the ToDo pile so it gets looked at sooner rather tgan later. But, as usual, I'm not going to give any timescale.
|By: Guest||Posted on: Nov 13 2020 at 01:54:23 AM|
|Would the average not just be calculated from each NEW order placed (or recieved)?|
The problem is with taking the most recent price, and updating the standard price, is that you have just revalued your entire stock - maybe with a rogue price. If we buy a 1000 of soemthing for a £1, then buy 10 for £5, we will increase the value of any items left from the 1000.
So we leave this option turned off - But it would be turned on if the standard cost was not being used for the valuation.
I personally think this is a fundamental requirement. Inventory should be valued at the purchase cost, (or as close to it as possible).
|By: Simon Q||Posted on: Jan 29 2021 at 12:44:40 PM|
|I would second a request for this feature. I am assesing the program and am very impressed, but this night be a stumbling block to using it.|
In the MRP system that the company I worked at before used, the stock record has latest and average costs.
On hand qty is zero.
Book in 100 @ £1.00 > Latest Cost £1.00 each > Average Cost £1.00 each.
Sell 50, 'Cost of sale = 50 x £1. (Or issue to Work Order).
Book in another 100 at £1.10 > Latest Cost £1.10 each > Average Cost £1.0667 each.
Sell another 50 'Cost of sale' = 50 x £1.0667
Value of inventory left = 100 x £1.0667
No requirement to work back through historic purchase orders.
|By: Guest||Posted on: Feb 20 2021 at 06:31:36 AM|
|This is correct.|
We need to have this feature, and then the ability to cost an assembly, and current stock valuation, on either this calculated average or the standard cost.
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