SAP Business One. Can I determine Last Evaluated Price?

[yaonianyang27]

Hi experts,

To accurately reflect the situation in our warehouse, we use two codes for certain materials: (1) "pcs" for individual pieces and (2) "Box" for boxes of materials. This helps us track how many boxes and individual pieces of a material we have in stock.

For example, we have item code A001 for a screw and another item code B001 for a box of screws, where each box contains 1000 screws. The Bill of Materials (BOM) for B001 is 1000 units of A001. Since A001 costs $0.2 per screw, the cost of B001 is $200 ($0.2 x 1000).

When we run out of individual screws, we execute a disassembly production order to "unpack" a box of screws. This means we disassemble 1 unit of B001 to obtain 1000 units of A001 in SAP, allowing workers to access 1000 individual screws from our warehouse.

However, a problem arises when we use the moving average method to evaluate stock. When we disassemble a B001, the increased count of 1000 A001 units does not always equal $200 in total value. We understand that this discrepancy may be due to errors in the past or rounding issues, but it consistently results in residuals in the Work in Progress (WIP) account. We attempted to clear out old stock in SAP before introducing new stock, but the system continues to produce inaccurate values.

Is there any way for me to determine the value when executing a disassembly production order, or any method to ensure that the value of A001 equals one-thousandth of B001's value?

Thank you very much!

Francis

[Abdul]

Multiple UOMs would be a good option however since you have BOMs according to UOMs and happily using it lets stick to it as it is. 

When you disassemble a product, depending upon inventory valuation method SAP assigns cost to the components according to moving average unless you follow standard costing in for all products involved in disassembly. 

[yaonianyang27]

Thank you Abdul,

1. I do not understand why multiple UoM is a good option, but I will look into that. For now, my understanding about multiple UoM is: we put 1 box on a purchase order and we will have 1000 pcs in stock when we turn the purchase order into A/P invoice, is that right?

2. Yeah I tried avoid moving average so I disassemble a box only when the individual quantity is 0. I though SAP will give individuals a value simply according to the cost the box, because there is no value last. But no SAP still assign an historical value and make journal for the difference.

Best regards,

Francis