This topic describes the inventory valuation method of lot pricing. Using the Lot Price (Lot) valuation method, the inventory is valued against a price thatis differentiated for each lot. The lot price is determined at the first receipt ofthe lot. If the price of the item changes and subsequent receipts are performedfor the same lot, the inventory is still valued against the lot pricedetermined at the first receipt of the lot. The price variance between thefirst receipt and subsequent receipts is balanced as a lot result in thefinancial reconciliation. For further information about financialreconciliations, refer to the User's Guide for Financial Integrationand Reconciliation Transactions (U8967B US). Example A purchase order lists one lot with a total quantity of 90electric switches. The purchase price of the first receipt of 50 switches is $5each. As a result, the lot price of the switches is $5 each.
The next day, you receive another 30 switches for the same lotwith purchase price $6, and after one more day you receive the remainder at apurchase price of $6.50 each. Because the lot price is determined at the firstreceipt, the lot price is still $5 each for the second and third receipt. The lot result for the second and third receipt is $ -30 (150 -180) and $ -15 (50 - 65), respectively. To set up lot pricing To use the inventory valuation method Lot Price (Lot):
As a result, LN calculates a separate valuation price foreach lot. Note To use lot pricing, the items must be lot-controlled. For more information, refer to Setting up lot items. To calculate the lot price for purchased items, you can have LN add surcharges to thepurchase price. To have LN add surcharges in the lot-price calculation,in the Lot Control Parameters (whltc0500m000) session, click Calculate Surcharges on Purchase Price of Lot Item. If you want to change the inventory valuation method after anyinventory arrived for the item or after any issues have been made, use the Change Valuation Method (whina1232m000) session. Lot price The Total Lot Price field in the Item - Lot (whltc1100m000) session displays the actual price. To view details, on the appropriate menu, click Cost Details. Related topics | |||||||||||
