FIFO Inventory Valuation

[Sarang]

Hello,

I am unable to understand the FIFO valuation of the stock in my inventory    

I used Stock Entry to receive 2 product batches on 1-1-2014 @ 08.00 AM

Batch 001 – 324 bottles @ $5.36 (valuation rate $5.36)

Batch 002 – 625 bottles @ $6.15 (valuation rate $5.88)

The valuation rate mentioned in the bracket comes from the Stock Ledger. My product is set at FIFO Inventory valuation.

I am wondering, why my second inventory batch is valued at $5.88 rather than $6.15? Am I missing something here?

Thanks in advance

Sarang

[Nabin Hait (ERPNext)]

Valuation rate at Stock Ledger report shows average valuation rate for all available stock. It does not show for that batch. Calculation is like: ((324*5.34)+(625*6.15)) / (324 + 625). But in the backend it maintains a [[qty1, rate1], [qty2, rate2]] queue for fifo valuation.

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[François de Ryckel]

That makes lots of sense.  I really like that.

Le mercredi 20 août 2014 12:51:18 UTC+2, Nabin Hait a écrit :

Valuation rate at Stock Ledger report shows average valuation rate for all available stock. It does not show for that batch. Calculation is like: ((324*5.34)+(625*6.15)) / (324 + 625). But in the backend it maintains a [[qty1, rate1], [qty2, rate2]] queue for fifo valuation.

On Aug 19, 2014, at 6:18 PM, Sarang <sara...@gmail.com> wrote:

Hello,

I am unable to understand the FIFO valuation of the stock in my inventory    

I used Stock Entry to receive 2 product batches on 1-1-2014 @ 08.00 AM

Batch 001 – 324 bottles @ $5.36 (valuation rate $5.36)

Batch 002 – 625 bottles @ $6.15 (valuation rate $5.88)

The valuation rate mentioned in the bracket comes from the Stock Ledger. My product is set at FIFO Inventory valuation.

I am wondering, why my second inventory batch is valued at $5.88 rather than $6.15? Am I missing something here?

Thanks in advance

Sarang

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