Inventory Model Change

(0) Share

Report

Posted on by tinerex

We are currently experiencing high unit prices every issuance.

This can be solved by recalculating every day but it is tedious for us to do. Then upon checking & simulation with the weighted average inventory model, this would be our desired output and would not require us to recalculate every day.

Is there a critical effect on our inventory moving forward if we changed our inventory model? See below plans we can take.

Plan A:

Cancel all recalculation from 2021-present (2020 is closed)
Change inventory model principle directly in specific item model group (only the item model group for raw materials)
Recalculate every period from 2021-present or recalculate up to present date

Plan B:

Create an entirely new item model group (Weighted average principle)
Create new item ID for the problem items (usually fast-moving raw materials)
Tag the new item model group to the new items
Move inventory from old to new item
Obsolete old item

All responses (3)

Answers (0)

Suggested answer

Mehdi AMRANI 1,422 on at

Like (3)

Report

RE: Inventory Model Change

Hi Tinerex,

if I were you, I would do it after an inventory closing with no open transactions.

Kind Regards,
tinerex 20 on at

Like (0)

Report

RE: Inventory Model Change

We are planning to change from Weighted Average Date to Weighted Average Principle
André Arnaud de Cal... 291,269 Super User 2024 Season 2 on at

Like (0)

Report

RE: Inventory Model Change

Hi Tinerex,

Can you tell what should be the new inventory model costing principle?