| Description |
Refer to RM-2611
Correct - Today, there is no setup for the Inventory MTM GL accounts, so it doesn't post.
The average item cost is the right number, as long as that is the costing method being used. What we are really looking for is the item cost that is reflected in the Inventory GL account. So if Soybean inventory is 1000 BU and the Average cost is $10, I expect the Soybean inventory account to be $10,000.
If we take that further, if the Market price is $11, then the gain is $1 * 1000 = $1000. That would be a debit to an inventory MTM account and a credit to a MTM gain account on the P&L. (Then reverses)
Another important point - Because MTM can be back dated, the average cost for the inventory cost needs to be correct as of that specific date.
Also from RM-2314
- The MTM gain/loss is no calculated. Market Price for the item should come from the basis entry screen. Contract Price is the Average. MTM gain/Loss should be )Market price - Contract price) * open qty.
!pastedImage_d112683_0.png!
!pastedImage_d112683_1.png!
Issues
- Inventory does not record net gain/loss in the Transaction Tab.
- No GL Entries for Gain and Loss
- Contract Price does not change based on the date entered Transaction Up To
Accepted
-MTM calculation is as follows (Inventory Value - Market value) * qty = Gain/Loss
-It should gain and loss entries based on the above acceptance criteria
- Contract Price which is the average cost of an item (particular to location) should display the running average cost of the item as of the date entered Transaction Up To.
- There should be configuration on where to set the default account for inventory types
|