Stock management and valuation

Context:

PROBIO has opted for the weighted average price (PMP) method to value its stock.

The employee Aloé Vera made an initial manual entry for the yellow fruit basket item at a price of $100 per unit, followed by a second entry at a price of $50 per unit. Using the PMP method, the average price is calculated by taking the total value of the entries ($150 for 2 units), which gives a unit price of $75. Thus, the stock of the yellow fruit basket item is valued at $75 per unit.

PROBIO, as a producer specializing in fresh food, also offers refrigerators suitable for storing fruit and vegetables, organized by serial number for efficient management. Employee Barbier Bruno placed an initial order with his supplier CHILLO, at a price of €1,000 per unit, for a refrigerator with serial number 123, which he received upon arrival, and a second order at €500. He will then see that the stock lines for the two items, which do not have the same serial number, will be separated.

Thanks to this system, each entry is separate and stored with its own price, ensuring there is no confusion.

Red fruits are now managed by batch number at PROBIO. Employee Barbier Bruno manually recorded 10 baskets of red fruits at a price of 100 euros each, with batch number L100, followed by a second entry of 20 baskets at a price of 200 euros each, under batch number L200.

Subsequently, another employee, Blanchet Yves, added 10 additional baskets for the item with the same lot number L100 at €50 each.

Due to this increase in quantity for the same batch number, the pre-tax purchase price of L100 red berries has been adjusted to €75 per unit, which is the average price for this item.

Implementation in SIMAX

To choose the valuation method for your inventory, go to Settings >Plug-ins and options, and [[Logistics]].

As an example, here we have chosen Weighted Average Price (PMP).

Simple item

You must now initialize the quantity in stock manually by making stock entries in Stock > Movements > Create manual movement.

To view stock levels, go to Stock > Stock Status.

In the Min. Qty and Max. Qty fields in the [Supply] section of the item's stock record, you can set stock management thresholds.The minimum quantity corresponds to the stock level that must be maintained to avoid any shortages, while the maximum quantity represents the ceiling that must not be exceeded in order to prevent overstocking.

When calculating replenishment, Simax will systematically seek to adjust quantities in order to reach the maximum stock level defined.The stock sheet cannot be modified by default.

Any changes to stock levels must be made via deliveries, receipts, or manual movements.However, if you want to allow direct modification of stock quantities, you must enable the |Modifiable stock| option in the logistics settings (Settings > Plug-ins and options, [[Logistics]]).

You can assign these quantities manually or use the ‘calculate minimum/maximum stock (Stock > Calculations > mini/maxi stock calculation).

In the establishment inventory list, all the stocks with quantities below the minimum quantity are shown in red.

To make a second entry for the item, follow the same path: Stock> Movements > Create manual movement.

Save, and now check the stock status of this item in Stock > Stock status.

You will have:

With the PMP method, the average price is calculated by taking the total value of the inputs (150 euros for 2 units), which gives a unit price of 75 euros. Thus, the stock of the yellow fruit basket item is valued at 75 euros per unit.

Serialized items

Employee Barbier Bruno placed an initial order with his supplier CHILLO, at a price of 1,000 euros per unit, for a refrigerator with the serial number 123.

He then made a manual entry at 1,000 euros each.

And bring in another refrigerator for 500 euros.

Here, two stock lines have been created because the item is managed by serial number. This has also separated their respective prices.

Items managed by batch number

Now, for items managed by lot numbers, always follow the same path to make a manual entry.

Provide only the necessary information about the item, especially the batch number.

To make a third manual entry, the path remains unchanged.

Here, the same item with the same lot number has been entered, but with a different price.

With PMP as the valuation method, only those with the same lot number are calculated together.