2369231 - Batch/Serial Valuation Method for Batch Items

The journal entry (JE) that revalues the inventory seems incorrect.

Prerequisites:

• An item is managed by batches and its valuation method is Batch/Serial.
• Only one batch has been entered for the following scenario.

Scenario:

1. Create Goods Receipt PO (GRPO) no.1 for quantity 10 at price 10. Total value is 10*10=100. The cost per unit is 10 and the batch value is 100.
2. Create Delivery for quantity 3 at price 10. Total value of 3*10=30. The cost per unit is still 10 as only the receipts are considered.
3. Create A/P Invoice based on the GRPO no. 1 for quantity 8 at price 15. This will cause a revaluation of 40 = (8*5) and the new cost per unit is now (100+40)/10 = 14.

Actual behavior:

• However, we only have quantity 7 in stock so the JE has to take this into consideration.
• The inventory value will be 7*4=28 and a price difference account will be added to the JE to consider the sold quantity 3*4=12. As the A/P Invoice is only for quantity 8, the allocation will be 80.

Consulting

This is correct system behavior because the batch/serial valuation method considers:

• The total receipts value.
• The total receipts quantity.
• The Actual Cost is the price paid for purchasing the batch.