The statistical price alternatives are generated by the system when reporting activities. They can be used on different occasions, for example for analytical purposes. The statistical price alternatives are described in the table below.
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Average Purchase Price: |
The Average Purchase Price is the average price of a purchased part, based on a number of the latest arrivals (deliveries). The price has been pre-defined to be calculated on the average or mean value of the ten latest arrivals. This price alternative is entered in the system as APP. |
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Last Purchase Price: |
The Last Purchase Price is the purchase price found on the order row of the latest arrival reporting. This price alternative is entered in the system as LPP. |
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Average Sales Price: |
The Average Sales Price is the average or mean value of the sales prices of a part, based on a number of the latest invoices. The number of invoices that the price will be calculated on is pre-defined as the average or mean value of the ten latest invoices. The Average Sales Price becomes updated when an invoice is printed and approved. This price alternative is entered in the system as ASP. |
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Last Sales Price: |
The Last Sales Price is the sales price on the latest invoice. The Last Sales Price becomes updated when an invoice is printed and approved. This price alternative is entered in the system as LSP. |
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FIFO: |
This is only used for inventory valuation purposes. This price is calculated according to the FIFO* principle – First In First Out. The inventory log, which the system generates during arrival reporting, is the basis for this calculation. This price alternative is entered in the system as F. |
* FIFO is calculated via the old inventory log records existing in the system. All records have a price which is saved during the arrival reporting. However, for a purchase order the price will be updated when the supplier invoice becomes linked to the arrival reported items. This means that the FIFO value can change even though no stock transaction has taken place after the latest inventory value list was created. Physical inventory and unplanned transfer to stock will have the standard price as value. Other transactions such as negative reporting of material via manufacturing order do not affect the calculation of FIFO. When FIFO is to be calculated, the part's balance is first checked. Then the program will find as many transactions (positive) as needed to be able to valuate these parts, and the oldest transactions will then be used first.
Example of FIFO calculation:
If you have a balance of 100 units and the most recent transactions are: first a purchase of 80 units for £10 each and then a purchase of 80 units for £20 each, then the FIFO will be: 80 x £20 + 20 x £10 = £1800, that is £18 per unit.