Overview
This program reads the cost revaluation adjustment on the transaction files for the current month and creates a new record for each title/cost adjustment. Standard unit is allowed to be maintained even if there is no stock, this is to set a standard cost before stock is received. A report is generated on the revaluation variances to show the values of the release for the current month. Report is generated with no general ledger interface. The report can be run in report mode only or to report and update the total revaluation variance of previously released field.
This report displays the following information.
- Warehouse
- Adjustment reason code
- Period
- Process number
- Adjustment quantity
- Trade/base original unit cost
- New unit cost
- Adjustment value
- Currency
This process performs following actions.
- The processing period on the transaction header is used as basis of the selection. A new record is written for the total cost adjustment.
- The status on cost variance file is marked as R indicating to the system that this record is ready for revaluation variance releases.
- Transaction files are read for the current month.
The following actions are performed depending on the type of transaction.
- Sales transactions (invoices)
The period on the transaction header is used as the basis of selection as well as the date of the transaction which must be greater or equal to the date of the cost revaluation.
The total quantity invoiced is updated for each sold item.
The sales transaction must update all existing records on the cost revaluation file satisfying the above date condition.
- Stock adjustments down
The period on the transaction header is used as the basis of selection.
The total quantity revalued is updated for each down adjustments.
- The function calculates the total variances for each record on file and calculates the total applicable releases as follows:
Total variance = (total quantity adjusted) * (value variance)
Total applicable releases = (total quantity invoice/credit) * (value variance)
- The value to be released is calculated as follows:
Release value = (Total calculated variances) – (total applicable release) – (total variance previously released)
- The report can be run in report mode only or to report and update the total revaluation variance of previously released field.
- Once the batch is completely released the status changes to C.
Maintain Inventory Cost of an Item
- In the menu, expand Base Modules > Distribution > Inventory Management > Warehouse Management > Non RF Stock Control > Stock Adjustments > Other and double-click WH Cost Revaluation/Adjustment. DSM300 Inventory Cost Maintenance panel appears.
| Field | Description |
| Item | Item code for the item being adjusted. |
| Warehouse | Name of the warehouse where stock adjustments are to be made. It is default from TMSDS/IM-WHDFT but can be overridden. |
| Adjustment code | Adjustment code signifies reason for item cost adjustment. This helps to separate out different types of adjustments. |
| Reference | This is user defined reference to identify adjustments. |
| Line text | An optional entry of description of the adjustment. This is used in audit reports. |
- Enter the above information as required.
- Click OK to confirm the selection.
Depending upon the costing method of the selected item, different inventory cost maintenance panels/fields are displayed. In case of items with costing method = Weighted Average (WAVG) the following fields are displayed on the panel.
View the fields on the panel| Field | Description |
| Costing method | This is costing method for the selected item. |
| Last unit cost | Unit cost of selected item when it was lasted changed. |
| Last cost update | Date on which unit cost of selected item was last changed. |
| Quantity on hand | This is total stock on hand quantity for the selected item. |
| Unit cost | This is current unit cost of selected item |
| Total cost | This is total cost of all stock on hand items with this unit cost. |
| New unit cost | The new unit cost defaults and may be overridden by the adjusted new cost. |
| New total cost | The new total cost defaults and may be overridden by the adjusted new total cost |
| Adjustment value | This is total change in value of overall stock on hand due to unit cost changed. |
- Enter the new unit cost and click OK to confirm the changes. On successful upload ‘Cost change completed successfully‘ is displayed.
In case of items with costing method = First In, First Out (FIFO) or Last Cost (LCST) or Standard (STD), following functions/options are available after initial selection.
| Functions/Options | Description |
| Single cost | This function is used to change unit cost of an item for all cost breaks. |
| Change | This option is used to adjust unit cost for particular cost break. |
Unit cost and total cost of an item in trade and base currency within a specific cost break are displayed.
- Click function Single cost. The panel displayed shows the following relevant fields.
| Field | Description |
| New unit cost | The new unit cost defaults and may be overridden by the adjusted new cost. |
- Adjust new unit cost in trade and base currency. If unit cost is adjusted using this function then new unit cost is applied to all cost breaks and variations. Click OK to confirm the adjustment.
- Select record and click option Change. The panel displayed shows the following relevant fields and functions.
| Functions/Fields | Description |
| Calculate base | This function is used to calculate base cost of selected item when trade unit cost is specified. |
| Bond code |
This displays the bond code identifying the PSI type. The Bond code is used to identify whether the stock is to be sold as Duty Free or Duty Paid. If the field is displayed as: 0 – Duty must be paid on the Item before it is sold to customers 1 – Duty does not have to be paid on the Item until after it has been sold to a customer |
| Age date | The date on which selected item’s cost will age meaning it will no longer be used. |
| FIFO batch reference | This is a ten character, free format text field, which identifies the document from which the FIFO batch originates. |
| Process number | This is system generated number which will uniquely identify particular cost adjustment transaction |
| Last receipt quantity | Total of selected item quantity last receipted by any warehouse. |
| Last receipt cost | This is total cost of selected items last receipted by the warehouse. |
| Quantity on hand | This is total number of items available in hand. |
| Trade currency/rate | All costs are displayed in trade as well as base currency. This field displays trade currency and exchange rate for the conversion between trade and base currency. |
- Adjust unit cost in trade and base currency, and adjust corresponding. Exchange rate can also be maintained.
- Key in all the required changes and click OK to confirm the changes. This completes the process of unit cost adjustment for selected item.
Maintain Inventory Costs for Multiple Items
Multiple items and costs can be updated using an excel upload, rather than having to update each item separately with new costs. Iptor supplied template (DSM300.xlsx) must be used for this batch update.
- In the menu, expand Base Modules > Distribution > Inventory Management > Warehouse Management > Non RF Stock Control > Stock Adjustments > Other and double-click WH Cost Revaluation/Adjustment. DSM300 Inventory Cost Maintenance panel appears.
- Click function Import Excel. DSM300 Inventory Cost Import panel appears.
- Enter the excel file location, filename and the sheetname.
- Click OK. On successful upload ‘Cost change completed successfully‘ is displayed.
| Note | Any error messages including negative costs will be highlighted, |
