Moving Average cost on company level

ERPNext
#1

Hi,
I have multi warehouses and it is possible that the same items are in more than one warehouse.
I see that ERPNext is calculated the Moving average cost at the warehouse level for each item

I need to calculate the moving average cost at the company level so the item valuation rate will not be different for each warehouse.

Any advice?

thank you in advance

#2

Moving average is on company level. Don’t think it’s possible to have two methods. Check Stock Settings.

#3

Thank you Muzzy.
Let me explain what I am asking for?
I have one item “A”, and two warehouses (1 ,2).
if I create 2 material receipts as following
Item A Warehouse 1 QTY 2 Rate 1.5
Item A Warehouse 2 QTY 2 Rate 2
if check the valuation rate in Stock Balance report, I see that the valuation rate is 1.5 for warehouse 1 and 2 for warehouse 2
I am expecting the right rate should be :
(1.52) + (22) / 4 = 1.75
Thank you for your advice.

#4

My understanding is similar to what you are stating. There is one Item so not sure why you are getting 2 rates. This is first instance of such issue I have come across.

#5

Please find below what i get when i check the Stock Balance Report

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Untitled1164Ă—514 118 KB

#6

Costing is done on a warehouse by warehouse basis

You are right …a single item can have multiple cost based on warehouse.

This is a good thing generally speaking as it allows different SBUs to manage item costs separately from each other if need be

#7

Actually, it’s possible. Many standard ERPs allow you to choose the valuation area for stock at configuration time. Company level or warehouse level. Some even track two at the same time and allow you so specify a custom valuation level.

#8

Agreed; I’ve worked on ERPs with this level of costing flexibility.

@YGhoul is right; sometimes a business does not want separate costs per Warehouse.

  • Buy coffee cups for 5 each in Warehouse B.
  • Buy coffee cups for 10 each in Warehouse B.
  • Write a sales order using either Warehouse. And expect Cost to be 7.50 always.

It’s a reasonable request.

#9

True. In that case the valuation level to be set at configuration time is company as opposed to warehouse.

#10

Is there such a configuration. I believe by default its set at Warehouse Level.

#11

Unfortunately, it is only on warehouse level.
I think Moving average should be on company level by default. And the exceptional is on warehouse level.
I think this is a big problem and should be solved soon

#12

“I think this is a big problem and should be solved soon”

Possibly this request relates to or is close to your concern?

If so upvote it with your comments, or else check here and add issue so that your request is on record.

Note several Manufacturing PRs to do with POs with this release:

1 Like
#13

I am adding it to our stock module roadmap, it can be configurable.

3 Likes
#14

Hi

Are u adding the option of “Average Cost at Company Level or Warehouse Level”

Thanks.

#15

great, thanks

#16

At setup, you should be able to choose a “organisational level for valuation”. Options should at least be Company and Warehouse with possibility to even value at the level of a custom dimension. Different types of businesses tend towards valuation at different organisational levels. Manufacturers usually at warehouse level. Retailers usually at company level. Not always clear-cut.

1 Like
#17

Hii
Any update on this issue, please?