Different Statistical Price Alternatives
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. If the Setting Create supplier invoice basis during Arrival Reporting? is checked, all the purchase statistics are created during the final coding in the Register Supplier Invoice procedure, instead of at the actual time of arrival. 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 price is calculated according to the FIFO* principle - First In First Out. The inventory log record, which the system generates when for example reporting arrivals and manufacturing orders, is the basis for this calculation. This price alternative is entered in the system as FIFO. |
* FIFO is calculated via the inventory log records that exist in the system. These records have a purchase price which is saved during the arrival reporting. The records will have a final price which is saved when the supplier invoice is linked to the purchase order. For manufactured and stocked parts, the FIFO price will be loaded to the inventory log record during price calculation in the Price Calculation - Inventory Movements procedure. The price that will be used as final price in the inventory log record during physical inventory and unplanned transfer to stock is determined by the settings Price alternative for FIFO at inventory and Price alternative for FIFO during unplanned stock movements. 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 £20 each and then a purchase of 20 units for £10 each, then the FIFO will be: (80 x £20 + 20 x £10)/100 units = £18 per unit.