Item Valuation question 1

[johnhugh]

Hi, I'm using Accpac 6 with avergae costing.
I've done below test and am wondering what best to do with it.
As you can see, I receipted 1000 items, then transfered them and then entered an invoice with a different exchange rate causing Accpac to adjust the receipt. At that stage I had no inventory but a negative cost of 50k sitting in stock.
Then I did another receipt for 100 items. At that stage my average cost was actually -193.88 due to the previous adjustment.
When transfering these 100 items, stock was debited (not credited) with $19,387.76 which is obviously the remaining balance from those 50k.
The location I transfered it to was credited (not debited) with $19,387.76.

As the result of those transactions I have a value of $19,387.76 sitting in one location with no stock.
The average cost of my transfer-to location is a neagtive $19,387.76 because the transfer got credited.
Do I understand that correct?

Whilst the transactions seem correct, this whole process seems wrong.
Is average costing the issue? How do I avoid messing up my item costs like this across all stock locations?

 

[ettienne]

This will always be an issue if you do anything that affects costs after the items have been shipped or transferred, unfortunately.

 

[johnhugh]

Thanks ettienne.
So if I don't want it to screw up my average costs too badly I need to adjust all items with zero quantity but a cost, to zero cost, correct?

 

[ettienne]

Correct. Run an item valuation (using location detail cost and not transaction costs) for all items with zero qty.
Also look at IC Periodic Processing, Adjust Costs.
I think you need to take a look at your procedures and try to eliminate transactions where these costs discrepancies arise, i.e. affecting item costs after they were shipped/transferred etc.

 

[johnhugh]

Thanks ettienne

 

[johnhugh]

Just another thought.
We cost our items during posting and don't run day end processing.
Would this affect my average costing as well?
Say I receipt an item, then transfer it and then enter the invoice (in this order) - if the item is costed during posting, every FX difference from the invoice remains in the receipt location.
When doing day-end, would Accpac be smart enough to see that there is a FX difference and post the invoice before doing the transfer so the correcet cost is being transferred?

 

[ettienne]

Possibly, IC day end processes PO transactions first. You may need to do a bit of testing to see how it affects your scenario.

 

[johnhugh]

Thanks ettienne. Will do.