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Projects:Inventory Average Cost Transactions/UserGuide

Contents

Introduction

This documents describes how to install, how to configure and how to use the module "Inventory Average Cost Transactions".

This module adds a new tab that list all the inventory transactions that have been taken into account to calculate the "average" cost of a product at a given date range.

This new tab is named "Average Cost Transactions" and can be found in the "Product" window under the "Costing" tab.

Installation

This module is included into the Openbravo 3 distribution since 3.0PR15Q4. If you want to install it in a previous version, please follow these steps:

A detailed guide on how to install can be found in the Install Module video.

Configuration

There is no configuration required to use this module.

Moreover, existing calculated "average" cost will already have the list of the inventory transactions included in each "average" product cost calculation.

Use Cases

There can be as many records in the "Costing" tab for a product as required.

Average Cost

If "Average" algorithm is the algorithm used by the Organization's Costing Rule available, every time that a new "average" cost is calculated for a product a new record is created in the "Costing" tab showing that new "average" cost valid within a given date range.

This module adds a new tab under "Costing" tab named "Average Cost Transactions".

As shown in the images below, the "Average Cost Transactions" tab allows the end user to review the list of all the inventory transactions such as receipts or shipments, that Openbravo Costing Server has taken into account to calculate each "average" cost of a product.


1. Dated on 10-01-2015, a receipt of 5 units of the product is booked at a purchase price of 100,00€/unit.
This implies there is only 1 inventory transaction, a goods receipt, involved in the calculation of product average cost of 100,00 €/unit:
Product Cost (Average) = Transaction Cost / Movement Qty = 500,00 / 5 units

AverageCostTransactions ProductAverage1.png

2. Later on, dated on 15-01-2015, a shipment of 1 unit of the product is booked.
Besides that, dated on 18-01-2015, a new receipt of 5 units more of the product is booked at a new purchase price of 125,00 €/unit.
This implies there are already 3 inventory transactions involved in the calculation of a new product average cost of 113.89 €/unit:
Product Cost (Average) = Transaction Cost / Movement Qty = (500,00 - 100,00 + 625,00) / (5 units - 1 unit + 5 units)

AverageCostTransactions ProductAverage2.png

Finally, there is an additional tab "Transaction Adjustments" under "Average Cost Transactions" tab that informs about automatically created Cost Adjustments Lines if any.

In the image below, a product which turned into negative stock got a Negative Stock Correction Adjustment.

AverageCostTransactions ProductNegative.png

Standard Cost

If "Standard" costing algorithm is the costing algorithm used by the Organization's Costing Rule available, no new records are created in the "Costing " tab, unless a new standard cost is manually entered by the end-user there, or a new standard cost is automatically book for the product by using a process such as the Inventory Amount Update.

If "Standard" costing algorithm is the one being used, this new tab "Average Cost Transactions" will not even be shown, starting from version 1.0.4.

If the costing algorithm used turns from "Standard" to "Average", therefore a new Costing Rule is created starting from a given date, this new tab will only be shown under the first "average" cost calculated for a product, starting from 1.0.4.

Retrieved from "http://wiki.openbravo.com/wiki/Projects:Inventory_Average_Cost_Transactions/UserGuide"

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