Is the valuation rate of an item found in the stock balance report based on the warehouse that contains that item or global ? that is if I purchase 2 units of an item with moving average valuation method at 20USD each at warehouse A and another 2 units at 30USD each at warehouse B, do I expect a valuation rate of 20USD at warehouse A and 30USD at warehouse B? or 25USD for both warehouses?.
I expected that the valuation rate for that item in inventory would be the same, but this is not the case because it seems ERPNext calculates the valuation rate at the warehouse level.
Yes, that’s right. Valuation is maintained at the warehouse level. But if you were to look at a metric that’s company independent - like say the BOM Cost - not sure whether Moving Average would be applied or FIFO would be applied.
Not that I have any influence over this but I definitely have a use for maintaining valuation at the warehouse level. In fact the implementation plan for a client will collapse if separate valuation is not maintained in different warehouses, but what’s your use case for a common valuation rate across all warehouses?
Thanks, @JayRam, I do not have an exact use case, I was trying to figure out why postings were being made to the stock adjustment account when I do Stock Entries for material transfer, It led me to realize it was due to differences in item value. Thank you.
Actually I meant to say But if you were to look at a metric that’s warehouse independent - like say the BOM Cost - not sure whether Moving Average would be applied or FIFO would be applied.
Once I understand how ERPNext handles these stuff, I have been able to hack (and I use that term not from a programmers perspective but from a users perspective) ERPNext to make it work for me in different client deployments.
Exactly, I think it is important to understand how ERPNext handles these situations and model client deployments to allign with that.