Hi,

We are working on baan 4c4.

We want to amortise stock (reduce the value of stock of some quantity from total stock). is there any standard procedure available in baan to amortise stock?

All inventory related transactions based on standard cost.
is there any way to keep standard cost for item & valued some quantity of same stock at different values?

thanks

U can amortize stock value using Recalculate & Update cost prices ticpr2210m000. Cost prices are calculated as per priority set by u in ticpr1101m000 .

You can use the stock valuation method as 'Lot Price" if you use Lot control and Location control module and have your inventories valued at actual price. This will still not work for Manufactured items. For Purchase items it will definitely work.

running baan4c2, cost price calculation code is AP, LP,CP,SI
home currency is CDN, purchasing US goods
every time a cost price calculation (ticpr2210m000) is run, part of the valuation is based on the exchange rate

so if I purchase an item for 100$ US at an exchange of 1.47, its avg price is 147 CDN

now, two months later, the exchange rate is 1.35, the item has not moved (still in inventory), my cost price calculation will give me a new avg price of 135 CDN

how / can I prevent exchange rate fluctuations from affecting the value of my inventory (to meet GaaP requirements) ?

is there a cost price calculation code that will do this ?

is ticpr2210m000 the only session that change the avg price ? can I change the avg price at time of receipts ? time of invoice matching ?

how / can I prevent exchange rate fluctuations from affecting the value of my inventory (to meet GaaP requirements) ?

is there a cost price calculation code that will do this ?

is ticpr2210m000 the only session that change the avg price ? can I change the avg price at time of receipts ? time of invoice matching ?


I don't know GAAP requirements . However in order to insulate the currency fluctuations either u should use home currency for purchase or use simulated price (SP in ticpr1170m000) in the higher priority and maintain the simulated price in CDN.

There is no cost price calculation code to do this.

ticpr2210m000 does not change the average price . IT changes the cost price . Average & current price is updated from invoice approval (tfacp1140s000) or price change tdpur4122m000 depending on method of calculating avarage price in tdpur4100m000.

Hello,

In the case mentioned above with CDN and USD currencies, Cost accounting would suggest the best approach is to use Simulated purchase prices, and make that the standard. You would naturally be updating standards either once a year / or monthly depending on policy.

From an accounting standpoint, you would handle the currency differences as variances to cost, as you would have seen the CDN dollar has gained and lost value marginally over the past few months. No doubt these differences would be dealt with as variances to Cost, and booked accordingly.

From GAAP (cdn) you would not revalue the inventory due to currency revaluation / written off, except in the case where some part of the inventory is defined obsolete. Note that US GAAP allows LIFO whereas in Canada we normally use FIFO.

Best wishes,