The following example has been taken from Axapta Trade and Logistics Training Matrial. Please help understand the doubts mentioned below: Example: In one month, there were three receipts of an item number: Date Receipt Value Avg. Cost Price 01/01 10 units At 10.00 each 10.00 10/01 10 units At 20.00 each. 15.00 20/01 10 units At 30.00 each. 20.00 In the same month, there were two issues. Axapta registered the following: Date Receipt/Issue Value Avg. Cost Price 01/01 10 units At 10.00 each. 10.00 05/01 4 units (10.00) 10.00 10/01 10 units At 20.00 each. 16.25 20/01 10 units At 30.00 each. 21.54 22/01 11 units (21.54) 21.54 Total Value 15 units 323.08 Question(1): How is the value of the Avg. Cost Price on 05/01 = 10.00 ? Question (2): How is the value of the Avg. Cost Price on 10/01 = 16.25 ? Question (3): How is the value of the Avg. Cost Price on 20 and 22 /01 = 16.25 ? Please explain Q1, Q2,Q3 On February 1, the inventory has to be recalculated. You perform a recalculation according to the inventory model specified in the item’s inventory model group, in this case FIFO. The two issues are thereby matched with the oldest receipts, which make Axapta register the following: Date Receipt/Issue Value Avg. Cost Price 01/01 10 units At 10.00 each. 10.00 05/01 4 units (10.00) 10.00 10/01 10 units At 20.00 each. 16.25 20/01 10 units At 30.00 each. 21.54 22/01 11 units (6 at 10.00 ea.) (5 at 20.00 ea.) Total Value 15 units 400.00 26.67 The result of the inventory closing is that the total inventory value is 400.00, not 323.08. Question (4): How is Total Value on 22/01 = 400. Please explain Following Questions are unrelated with the example above: Question (5): How can I see the total Inventory Value of an Item? Question (6): How can I see the Average Inventory Value of an Item?
Q1 (Answer) because on 05/01, only one receipt has happened, that is : 01/01 10 units At 10.00 each 10.00 so the average price for the item is $10.00 (assuming it’s in dollar) Q2 (Answer) Before 10/01, there has been 2 transactions, which are : 1. Receipt of 10 pcs at $10.00 (01/01) - Total value becomes 1010= $100 2. Issue of 4 pcs at $10.00 (05/01) - Total value becomes 610=$60 So, before 10/01, the inventory is 6 pcs ($60) On 10/01, there is a receipt of 10 pcs at $20 each, totaling $200 So, the inventory after that receipt becomes 6+10 = 16pcs, with total value = $60+$200 = $260 Thus, the price/pcs = $260/16 = $16.25 Before I answer Q3 and so on, please make sure you understand at this point first. Hope it helps