Handling Multiple Item Prices

ERPNext
#1

If I have created an item in ERPNext and its selling price suddenly changes, then how do I ensure that the stock with old price and stock with new price are managed with FIFO? Please guide.

#2

How to handle multiple Item Prices?

You can handle multiple item prices in several ways, depending on your business requirements. Here are some methods:

  1. Price List: You can create multiple price lists, and assign different prices to each item on the list. You can also set up rules for discounts, markups, and taxes based on the customer or the item. When creating a sales order, you can select the appropriate price list for the customer or the transaction.
  2. Customer-wise Item Price: You can set up customer-wise item prices. This means that for each customer, you can set a specific price for each item. When creating a sales order, the system will automatically pick up the customer-specific prices for the items.
  3. Item-wise Price: You can set up item-wise prices, which means that for each item, you can set a specific price for each customer. When creating a sales order, the system will automatically pick up the item-specific prices for the customer.
  4. Batch-wise Pricing: If you deal with goods that have different batches, you can set up batch-wise pricing. This means that for each batch, you can set a specific price for each customer or item.

To set up these different methods of handling multiple item prices, you can go to the Item master, select the item you want to assign the price, and then choose the appropriate pricing method. You can also set up different pricing rules and price lists in the Pricing Rule and Price List modules.

How do I ensure that the stock with the old price and the stock with the new price is managed with FIFO?

Here are the steps to set up FIFO valuation for an item:

  1. Go to the Item master, select the item you want to enable FIFO valuation for, and click on the Valuation section.
  2. In the Valuation section, select the FIFO method from the Valuation Method drop-down list.
  3. Save the changes.

With the FIFO valuation method enabled, ERPNext will automatically track the cost of each item as it enters and leaves your inventory. When you receive new stock with a new price, ERPNext will create a new valuation rate for that item, and the system will use the oldest stock with the previous price for the first outflow.

You can also check the stock and valuation details of your inventory by going to the Stock Ledger report or the Stock Balance report.

It is important to note that enabling FIFO valuation requires careful attention to the transactions recorded. All incoming and outgoing stock movements must be accurately and promptly recorded to ensure proper inventory valuation.

Hope you understand.
Thank You!

#3

Thanks a ton!