We’re just getting around to fully managing inventory in Aspire and concerned by the impact to on-hand inventory valuation when there is a new purchase price change. If we make the adjustment to the purchase price will it automatically apply the new rate against existing on-hand inventory that was purchased at a lower rate?
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Inventory valuation when purchase price changes
+6Best answer by David_Spiritus
There was a time when your concern was valid and the system would in fact revalue on hand inventory when a price change was made. However, for somentime now new purchase on inventory items is managed via a separate pricing entry with the creation date as the effective date. Thereby only inventory purchases on or after the new price date gets valued at the new purchase price. The rest of the inventory on hand remains at its purchase price.
+14There was a time when your concern was valid and the system would in fact revalue on hand inventory when a price change was made. However, for somentime now new purchase on inventory items is managed via a separate pricing entry with the creation date as the effective date. Thereby only inventory purchases on or after the new price date gets valued at the new purchase price. The rest of the inventory on hand remains at its purchase price.
+6There was a time when your concern was valid and the system would in fact revalue on hand inventory when a price change was made. However, for somentime now new purchase on inventory items is managed via a separate pricing entry with the creation date as the effective date. Thereby only inventory purchases on or after the new price date gets valued at the new purchase price. The rest of the inventory on hand remains at its purchase price.
Thanks David! Glad to know that that’s no longer a concern!
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