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How does the system generate stock values for the inventories in the UBS system?
Author: Bruno Reference Number: AA-08308 Views: 76 Created: 2018-10-29 16:28 Last Updated: 2018-10-29 16:28 0 Rating/ Voters

How does the system generate stock values for the inventories in the UBS system?

 

At the basic level, value of an item in the inventory can be calculated by:

 

Multiplying the Quantity with Price.

In the housekeeping setup --> general setup --> stock valuation,

 

You can choose how the system calculate the value of your stock/inventories:

 

1. Fixed Cost (the price of an item is fixed with one value only)

2. Month Average (the price of an item is the Average price of all items purchased in the month)

3. FIFO (the abbreviation means First in First Out, this means price of the inventory is calculated by history of the transacted item price)

4. Moving Average (the moving average of the price of all the month’s averages)

 

What bills can contribute to stock valuation in the UBS?

 

In the housekeeping setup > general setup > stock valuation,

You can check / mark which bills that can contribute:

 

1. Goods Receive Note (GRN)

2. Supplier Invoice

3. Adjustment Increase

4. Credit Note

5. Transfer Note

 

How items have price and quantity?

You can find the above picture in maintenance --> item file maintenance:

 

There are values and information in this form that will be used as the base value for various calculations in the UBS system. 

1.    Cost Price

2.    Selling Price

3.    Minimum Selling Price

4.    Quantity

5.    Formulas

6.    Item no / reference number

 

How are the values of the stock calculated?

 

If you have checked on Goods Receive Note and Supplier Invoice contributing to stock valuation, when you should create bills/notes related to stock valuation used to affect the calculation:

 

Example:

Create a GRN to record stock in of the item SalonPas Patch of 10 items.


Create a Supplier Invoice to record stock in price of the item SalonPas Patch of 10 items with different default cost price. Make sure the Update Unit Cost is checked when you [ADD] a new bill.  Then update the supplier Invoice to GRN to record stock in.

 

Please take note GRN does not indicate Price like supplier invoice.  So now we call out the Stock Card Report to trace the value of the inventory.


The first GRN has the cost price of 2.85 as defaulted, while the second price as 2.95.  What is the value of the inventory?

The above report is called out in Reports > Inventory Reports > Item Status & Value.

 

How the system calculates 58.00?

 

In the stock card we derive the value from:

GR 00000005   10 Qty.  x   Cost Price 2.85    =    28.50

GR 00000006   10 Qty.  x   Cost Price 2.95    =    29.50

Total cost is:                                                           58.00

 

To calculate the cost of sales of the item sold:

Create a sales invoice selling the product with default price.

After creating the invoices, in the normal process of business the invoices are to reflect stock out and items sold to customers.  The next steps is to call out the valuation report and profit margin.

First, we run: Reports --> Sales Report --> Profit Margin --> Calculate Cost of Sales --> FIFO.

Second, we run: Reports --> Sales Report --> Profit Margin --> By Bills --> Ok --> Update Cost

Third, we run Inventory --> Item Status & Value --> Ok.

The profit margin for the first bill is higher because beginning entry of first 10 items we bought at 2.85.  However, the 2nd bill profit margin is lower because the 11th item sold has a cost price of 2.95.

The remaining stock in inventory has reduce, thus, the value of remaining stock also is reduced.

In order to trace the value of the stock in inventory, we pull another report out in: Enquiry --> Trace Item Cost Value --> FIFO --> filter item to enquire.  As seen below 9 items are priced at 2.85.

 


 

 

 

 

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