Item Costs and Valuation Methods: To Sell Items with the Specific Method

The following activity demonstrates how to process to completion a sale of stock item that is assigned the Specific valuation method.

Story

SweetLife Fruits & Jams is a midsize company, which purchases fruit, jams, and spices from large fruit vendors and then sells these goods to wholesale customers such as restaurants and cafes. Fresh pomegranates are among these goods. The POMEGRANATES stock item (which represents one box of fresh pomegranates) has been assigned the Specific valuation method in MYOB Acumatica.

On January 15, 2024, the company bought five boxes of pomegranates, and these boxes have different expiration dates. On receipt of the boxes, different lot numbers have been assigned to them. Further suppose that the Delicious Energy restaurant ordered four boxes of pomegranates.

Suppose that you are Regina Wiley, a sales manager at SweetLife. You need to process the sale and review the cost of the pomegranates issued from the warehouse.

Configuration Overview

In the U100 dataset, the following tasks have been performed for the purposes of this activity:

• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
  • Inventory and Order Management, which provides the standard functionality of inventory and order management
  • Inventory, which gives you the ability to maintain stock items by using forms related to the inventory functionality and to create and process sales and purchase documents that include stock items
• On the Customers (AR303000) form, the DELIENERGY (Delicious Energy Restaurant) customer has been created.
• On the Lot/Serial Classes (IN207000) form, the LTFRT lot class (a class for tracking fruits by lot number and expiration date) has been created.
  Note:

  In a production system, you will enable the Lot and Serial Tracking feature and configure all needed lot and serial classes before processing documents. For simplicity, in the U100 dataset, the lot class has already been created, assigned to the stock item, and the items have been received to inventory.
• On the Stock Items (IN202500) form, the POMEGRANATES stock item has been created. The LTFRT lot class, and the Specific valuation method have been assigned to the stock item.
• On the Receipts (IN301000) form, a receipt dated 1/15/2024 has been created for the POMEGRANATES item and has the following lines:
  • 1 box with the cost of $80, the FRT000915 lot number, and the 3/1/2024 expiration date
  • 2 boxes with the cost of $82.5, the FRT000920 lot number, and the 2/20/2024 expiration date
  • 2 boxes with the cost of $85, the FRT000925 lot number, and the 2/25/2024 expiration date

Process Overview

In this activity, you will do the following:

1. On the Enable/Disable Features (CS100000) form, enable the Lot and Serial Tracking feature.
2. On the Inventory Summary (IN401000) form, review the costs of the purchased jam.
3. On the Sales Orders (SO301000) form, create a sales order.
4. On the same form, quick-process the sales order.
5. On the Issues (IN302000) and Inventory Transaction Details (IN404000) forms, review how the stock item has been issued and how its cost has been calculated.

System Preparation

Before you start performing the steps of this activity, do the following:

1. Launch the MYOB Acumatica website with the U100 dataset preloaded, and sign in as sales manager by using the wiley username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the MYOB Acumatica screen, make sure that the business date in your system is set to 1/30/2024. If a different date is displayed, click the Business Date menu button, and select 1/30/2024 on the calendar. For simplicity, in this activity, you will create and process all documents in the system on this business date.

Step 1: Enabling the Feature

To track items in documents by lot numbers, you enable the Lot and Serial Tracking feature as follows:

1. Open the Enable/Disable Features (CS100000) form.
2. On the form toolbar, click Modify.
3. In the Inventory and Order Management group of features, select Lot and Serial Tracking.
4. On the form toolbar, click Enable.

Step 2: Reviewing the Costs of the Purchased Item

To review the costs of the POMEGRANATES item, do the following:

1. Open the Inventory Summary (IN401000) form.
2. In the Selection area, specify the following criteria:
   1. Inventory ID: POMEGRANATES
   2. Warehouse: WHOLESALE
3. Review the costs (see the following screenshot). Notice that the cost of each item with a lot number has been recorded separately.

   
   

   

   
   

Step 3: Creating a Sales Order

To create the sales order for the Delicious Energy restaurant, do the following:

1. On the Sales Orders (SO301000) form, add a new record.
2. In the Summary area, specify the following settings:
   • Order Type: SO
   • Customer: DELIENERGY
   • Date: 1/30/2024
   • Description: Sale of 4 boxes of pomegranates
3. On the table toolbar of the Details tab, click Add Row.
4. Specify the following settings in this row:
   • Branch: HEADOFFICE
   • Inventory ID: POMEGRANATES
   • Warehouse: WHOLESALE
   • Quantity: 4
5. On the form toolbar, click Save.

Step 4: Quick-Processing the Sales Order

To process the sales order, do the following:

1. While you are still viewing the Sale of 4 boxes of pomegranates order on the Sales Orders (SO301000) form, on the form toolbar, click Quick Process.
2. In the Process Order dialog box, which opens, do the following:
   1. In the Warehouse ID box, make sure that WHOLESALE is selected.
   2. In the Shipment Date section, make sure that Today is selected.
   3. In the Shipping section, make sure that the following check boxes are selected:
      • Create Shipment
      • Confirm Shipment
      • Update IN
   4. In the Invoicing section, do the following:
      • Make sure that the Prepare Invoice check box is selected.
      • Select the Release Invoice check box.
   5. Click OK. The Processing Results dialog box opens. Wait for the system to create the documents.
   6. Close the dialog box. Notice that the sales order now has the Completed status.

Step 5: Reviewing the Item's Costs

To review how the system has calculated the costs for the issued POMEGRANATES item, do the following:

1. While you are still viewing the Sale of 4 boxes of pomegranates order on the Sales Orders (SO301000) form, open the Shipments tab.
2. In the Inventory Ref. Nbr. column, click the link. The issue opens on the Issues (IN302000) form in a pop-up window.
3. On the form toolbar of the Details tab, click Line Details.
4. In the Line Details dialog box, which opens, notice that items with the following settings have been issued (see the following screenshot):
   • Two boxes with the FRT000920 lot number and dated 2/20/2024
   • Two boxes with the FRT000925 lot number and dated 2/25/2024
   Note:

   The box with the FRT000915 lot number has not been issued because it has the latest expiration date.

   
   
   

5. Open the Inventory Transaction Details (IN404000) form.
6. In the Selection area, specify the following criteria:
   • Period: 01-2024
   • Warehouse: WHOLESALE
   • Inventory ID: POMEGRANATES
7. Review the amounts in the table (see the following screenshot). Notice that the items are issued at the unit cost of 82.5 and at the unit cost of 85.0—that is, at the unit cost for which the items have been received. The cost is tracked separately per lot number assigned to the stock item.