WACC

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Our system is considering all consumed and on hand item quantity and cost in WACC calculation! can we calculate our Items WACC based on on hand quantity only and not to include consumed quantity? ax 2012 r3

Please help!

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Ludwig Reinhard Microsoft Employee on at

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Hi Eng1122,

Is the WACC calculation the weighted average cost of capital or something else?

Can you specify where and how you make this calculation exactly?

Many thanks and best regards,

Ludwig

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kumar.tripathi 77 on at

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Hi Thanks for reply, I am writing on his behalf. please review the print screen.

We haven't performed yet inventory closing. we want to do WACC calculation based on hand inventory.

Scenarios -

Purchase QTY15 and sales 10QTY then purchase another 5 QTY now we have on hand 10QTY so we want system should calculate WACC based on hand inventory .

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Ludwig Reinhard Microsoft Employee on at

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Hi,

Thank you for this clarification.

All items that are received (purchased) are valuated based on the price that you enter.

You can see this from your calculations shown above.

The weighted average inventory calculation revalues only items that have been issued (sold) based on the valucation principle selected.

What is it that you don't consider right in the calculation of the prices shown above?

What issue price would you expect to see for the three issuances?

Best regards,

Ludwig

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