RE: Error in retail posting
Hi Manisha,
Per our assumption, the error is coming from the logic responsible for keeping the standard cost in inventory. The promise of standard cost is that the inventory value is always equal to qty * std cost price – with the accuracy down to the rounding error of the currency.
To better illustrate the problem let me give you an example. Let’s assume that we defined our cost to be 10$ for 3 pieces giving us a unit cost of 3.3333333 $
When we receive 1 piece into inventory the system is going to check the current on hand (0) and based on that it is going to stamp the cost price of 3.33.
When we receive a second piece the system is going to check the on hand again (1pcs * 3.33) and it is going to figure out that now it must stamp 3.34 to make sure that the amount is correct (6.6666666 should get rounded to 6.67).
Let’s assume that in meantime another transaction would like to post the third piece in parallel to the second one. The third transaction doesn’t see the other one yet so it also assumes that it needs to round the cost up stamping 3.34. If that would be allowed we would end up with the total inventory value of 10.01 for 3 pcs which is different than the standard cost. The check that is throwing the error is preventing this situation from happening.
We would recommend that you focus on preconditions to this problem. There are two preconditions:
1. The problem occurs only when standard cost in combination with the units being sold results in rounding. This is a setup data – can you try to change your standard cost to avoid roundings?
2. The problem occurs only when the item is processed in parallel by multiple transactions in the same site (std cost is always per site).
This is also recommended for future to use Moving Weighted Average model group instead of Standard cost:
We would recommend you changing to MWA Moving average. This methods is also perpetual but it does not have the same rounding constraints as Std. cost on Sales orders.
The MWA is a known inventory valuation method in retail industry. This method can be considered for retail implementations.
MWA may throw update conflicts on the Purchase side if you Invoice purchase orders in batch by end of month and same item has been purchased X times during the month.
I hope this helps.
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