See also:
You will find a general description of how to manage lists in MONITOR in the chapter Managing Lists in the System under General in the MONITOR Basics guide.
Why Use This Procedure?
This procedure is used to calculate an alternate average purchase price for parts called Mean price. The mean price is entered in the system as MP.
The mean price is an average of purchase prices based on a number of purchases made of the part. Mean price is usually calculated for P-parts (purchased parts) and used for inventory valuation in the Inventory Value List procedure.
The part's purchase statistics are used as the basis for the mean price calculation. Purchase statistics are created during the supplier invoice registration or during the arrival reporting. This is depending on if you link purchase orders to supplier invoices or not. The part's purchase statistics can be viewed in the Purchase Statistics - Parts or the Supplier Invoice Log procedures in the Purchase module.
You select the list and configure calculation settings under the Create tab. You will find printout samples and explanations of the values under Printoutsamples.
Differences Between Mean Price and Average Purchase Price
The average purchase price is based on the maximally 10 last purchases. The mean price can be based on a selectable number of purchases back in time. You can also impose a time limit back in time when calculating mean price, for example if you want the calculation to include only purchases made this year.
Another difference is that the average purchase price is a statistical price, which means that it is generated automatically by the system when reporting. The mean price, on the other hand, is calculated manually by the user (in this procedure).
Priority when Purchase Statistics are Missing
When calculating it is possible to enter that the mean price is to be copied from other price alternatives. Suppose that the purchase statistics are missing for the part during the time period on which the calculation is based. To avoid that the part's mean price is zero, you can load a price alternative that will be used as mean price. You can choose from supplier price, standard price or last purchase price. These price alternatives can be prioritized so that if the purchase price is missing the system will use the supplier price instead, etc.
What Update Options Exist for this Procedure?
The result from the mean price calculation can be saved by using the Display List.
Window Functions
Read more about the Window functions under Window Functions in the MONITOR Basics guide.