I encountered an issue when repacking from Item A to Item B.
As per system, the valuation difference will go into a difference account.
Do you have any suggestions or solutions where the valuation difference will amount to 0?
This means the valuation rate of repacked Item B will be different from current valuation rate.
We can do a journal entry to an Income or Expense account but what if Item B is part of a BOM? The valuation rate of finished items will not be accurate.
Do a Stock Recon with adjustment on valuation rate of Item B before EVERY repack. This is a manual and tedious process where user has to calculate manually.
My proposed solution would be:
To make Landed Cost Voucher applicable to a “Repack” so that the differences will go into the valuation rate of repacked Item B (if on FIFO) or across all Item B (if Moving Average)
During Repack, to have option to distribute the valuation difference to repacked Item B immediately.
How would you solve this from your experience?
I recollect having discussed this issue on another thread.
While creating repack entry, for the finished item, if valuation rate is not entered manually, then it’s valuation is set automatically same as the valuation of input/source item.
If you can encountering this issue, can you please share it’s screenshot? Did you enter valuation rate for the finished item manually?
As per the perpetual inventory valuation system, valuation for the item can be updated via stock transaction only. To correct the item’s valuation, you should create Stock Reconciliation entry for it.
Thanks! Did try to find it in this forum on this.
That is great! Found a way to make the difference to 0 as per your suggestion. Should have try that out! It was a bit confusing as there are 2 rates on the screen “Basic Rate” and “Valuation Rate” with “Valuation Rate” is a read-only field. Thought I can’t change the valuation rate then.
The rate that should be set is at “Basic Rate (as per Stock UOM)”. It has to be calculated manually.
Are we able to put up a request for an option to make this automatically?
On added note, I saw that there is no records on accounting ledger. Is this how it is supposed to work?