25 apr

moving average (SAP Business One)

Of the Moving average is a warehouse valuation method that dynamically recalculates the average price of an item after each purchase. Stock withdrawals until the next purchase are valued at this updated average price.

Important aspects of the moving average:

  1. Ongoing price update:
    • After each goods receipt, the average price of the item is calculated based on the purchase price and the Quantity recalculated.
    • This ensures that the stock value is continuously adjusted to current purchase prices.
  2. Bearing-dependent calculation:
    • If the option "Manage article costs per warehouse" is activated in the company details, the average price is calculated separately for each warehouse.
    • Without this option, a standardised average price is calculated for all warehouses.
  3. Stock revaluation:
    • Items with a moving average can be analysed with the help of a Stock revaluation document adjusted in order to adjust the inventory value to current market conditions.
  4. Display in the article master data:
    • The moving average price is displayed in the "Article master data" on the tab "Inventory data" displayed, either for each warehouse individually or for the entire item stock.

Advantages:

  • Realistic valuationThe moving average reflects fluctuations in purchase prices and thus provides a precise value of the inventory.
  • Simple implementationThis method is easy to use and is well suited to companies with frequently varying purchase prices.

The moving average is particularly useful for companies that value a dynamic and market-orientated inventory valuation. It enables realistic and flexible management of storage costs.

 

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