Hi Experts,

I am trying to understand what is MAUC. Moving average unit cost.

How is the cost calculated when I use this option?

I was told LN does actual costing and I have an option to choose MAUC or FIFO if I want to do select actual costing in my valuation of stock.


Can some one give me an example of what this means? What is the difference in the cost if i choose mauc or fifo. Is MAUC the same as actual costing because I understand that actual costing means cost comes from PO price and should not be average price.

Thanks and regards,

Hi Kingsto88,

I suggest you talk to your accounting consultant (I'm assuming you're not one) since actual costing is basic cost accounting concept. The statement that you can choose between MAUC or FIFO in order to have actual costing in BaanERP is correct from accounting stand point, however

PS: For high level explanation of what MAUC is, please read the Calculating MAUC in 7.1 thread

Rgds,
Paul

Here is a bit of explanation regarding MAUC, which I jusy digged up from some old documentation:


The MAUC is calculated at the moment of receipts, for purchase reciepts it
uses the reciept price for calculation and for production order reciepts the
reciept price is substituted with the cost of the item + surcharges and is used
for caluculation.

Moving-average unit cost is an inventory valuation method that values the
inventory against the average receipt price. The moving-average unit cost
(MAUC) is recalculated each time there is a receipt. The new MAUC is calculated
as follows:
MAUC = (old on hand * old MAUC) + (receipt quantity * receipt price) / (old on
hand + inbound quantity).

If there is a change in price after reciepts (eg: in session Change
prices/discounts after reciepts) , then the session "Process inventory
variances" should be executed for the correct Mauc calculation.

Hope this helps a bit.


Regards,
En