This is typically seen with the Weighted Average inventory valuation method in the following scenario:
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Product storage dimension groups are marked to track “Financial” inventory at site only (which is typically recommended).
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The inventory value report is run to display inventory value at a lower inventory dimension (warehouse, location, etc).
The reason for why this functions like this is purely mathematical…The weighted average is being tracked at the Site level. Therefore, Warehouse (or location) will never have its own weighted average per warehouse. It is never being calculated or tracked for that level.
Consider the following transactions:
Purchase 5 qty at $75 per unit - stored in warehouse 11 (site 1)
Purchase 10 qty at $140 per unit - stored in warehouse 12 (site 1)
Result = 15 on-hand for Site 1 with weighted average cost of $118.33.
Now sell all 5 from warehouse 11. These sales will be recorded with a cost of $118.33.
The result of these transactions will be to have zero on-hand quantity for warehouse 11.
Site 1 will have a correct inventory value of $1,183.33.
However, if you try to view on-hand inventory by warehouse (or run the inventory value report), it will appear as if warehouse 11 still has a financial value of -216.67.
The bottom line is that it is not possible to view inventory value by warehouse because it isn’t being tracked at that level. To see inventory value, you must consider it at the site level.
Brent