Inventory receiving and picking algorithm

A content is reprinted.
A few days ago, I held a forum with some newly recruited implementers and asked them to talk about their experience and obstacles in their career. It is found that they are generally not very clear about cost computing, especially the lack of material sending cost-related knowledge, mainly because they have never been involved in financial-related content before, for cost computing, it was the first contact.

I found that they did not form a system for cost-related knowledge. For example, they only know one thing about the cost of sending materials. Therefore, after the meeting, I summarized a piece of material about the cost of sending materials for their reference.

Different enterprises have different requirements for calculating the sending cost and adopt different methods. Generally, the calculation methods of the sending cost include the first-in-first-out method, the second-in-first-out method, and the weighted average method. The weighted average method is divided into the monthly weighted average method and the daily weighted average method. Now, I will illustrate the differences in computing methods and related skills in ERP operations with specific examples.

　1. first-in-first-out method.

Assume that a piece of material had November 15 pieces at a unit price of 5 yuan in 500 and November 30 pieces at a price of 5.5 yuan in 400. In December 1, the workshop took 700 pieces. Assume that there is no stock for the material, so the two ratios will be purchased. What is the actual cost of the 700 pieces of materials taken by the warehouse? Is it 5 yuan, 5.5 yuan, or an average of 5.25 yuan?

This mainly depends on the method used to calculate the sending cost. If enterprises adopt the first-in-first-out method, the above costs are all incorrect. The first-in-first-out method, as its name implies, means that the first-in-first-out method is used for advanced materials, and the later-in-One materials are used for outgoing use. The cost and price are calculated based on the actual price. At this time, 700 pieces of materials were received, and the first 500 pieces were calculated at the price of 5 yuan, because these 500 pieces were bought at the price of 5 yuan; the remaining 200 pieces are calculated at the price of 5.5 yuan, that is, based on the Price purchased later. The total cost of materials is 3600 yuan.

　Note:

1. The first-in-first-out method we mentioned here is the first-in-first-out method in account processing, which has nothing to do with physical objects. That is to say, the account is calculated based on the first-in-first-out method. However, in practice, it is possible that the later-in goods are obtained first.

2. If the first-in-first-out method is used, it requires a higher requirement for timely review of documents. If the purchase time is not too long, only the next day of the purchase, when the previous day's import orders are not reviewed in a timely manner, postponed a day of review, then when receiving the materials, on the opening of the receiving ticket, an error occurs because the cost and price of the picking ticket cannot be considered.

3. When materials are stored in the warehouse, the related costs should be recorded in a timely manner. In some companies, the delivery fee of materials is included in the price of materials, but in some enterprises, it is not. The material purchase price is separated from the material delivery fee. However, when calculating the material cost, the two must be added up. Therefore, if the related costs are incurred during warehouse receiving, the finance or warehouse should promptly Add the expense documents to the system and associate them with the corresponding warehouse receiving orders. This document should be input in a timely manner, especially when it cannot be processed every other month, because generally, enterprises carry forward costs at the end of the month. Otherwise, the cost calculation will be inaccurate.

　Ii. Post-import/FIFO method.

The latter-to-first-out method is similar to the latter-to-first-out method. It is mainly used by enterprises for the purpose of Prudence. The cost and price of sending materials are reversed based on the latest material purchase price. For example, in November 15, 500 pieces were added at a unit price of 5 yuan, and November 30 pieces were added at a price of 5.5 yuan in 400. In December 1, the workshop took 700 pieces. If the cost of sending the 700 pieces is calculated according to the post-import, first-out method, 400 pieces are calculated based on the price of 5.5 yuan, the remaining 300 pieces are calculated based on the price of 5 yuan. Finally, the total material cost of the 700 pieces is 3700 yuan.

　　Note:

The calculation method of the backward-forward/FIFO method and precautions for ERP operations are similar to that of the FIFO method. First, you must note that the latter-in-first-out method only targets accounts and has nothing to do with the food sending order; second, the relevant documents should be input and reviewed in a timely manner, especially the cost documents related to warehouse receiving. The phenomenon of monthly orders should be strictly avoided.

　3. Monthly weighted average method.

The weighted average method is much more complex than the above two methods. Because of its large computing volume, in the manual accounting stage, few enterprises use this method to calculate the cost of sending materials. The weighted average method can be subdivided into two situations based on different requirements. One is the monthly weighted average method and the other is the mobile weighted average cost method.

For example, in early November, the inventory cost of a certain material is zero. In November 5, 500 pieces were added at a unit price of 5 yuan, and November 10 pieces were added at a price of 5.5 yuan in 400. In November 8, the workshop took 300 pieces; In January 15, the workshop took another 400 pieces. How can we calculate the cost of the 700 pieces of materials?

　　How to calculate the monthly weighted average cost:

1. When collecting materials, the ERP system does not relate to the specific material cost data. That is to say, when calculating the monthly weighted average cost, you only care about the amount of materials collected. The specific material cost is calculated at the end of the month.

2. By the end of the month, the average material cost for the current month will be calculated based on the weighted average of the purchased quantity and price of the current month. In the above example, the average unit material cost price calculated based on the weighted average is (500 pieces * 5 yuan + 400 pieces * 5.5 yuan)/(500 pieces + 400 pieces) = 5.22 yuan. That is, the total cost of 700 pieces of materials in the month is 3654 yuan. It can be seen from this that the monthly weighted average cost is significantly different from other cost calculation methods, that is, the Unit material cost of the collection event occurred this month is consistent.

3. The remaining 200 pieces of material cost in the warehouse is calculated at a price of 5.22 yuan. The material cost is calculated as the base of the weighted material cost for the next month. This computation is troublesome when there are too many purchases each month. Manual accounting is difficult.

　Note:

1. Although this method does not have strict requirements on the timeliness of documents, such as raw material import orders and raw material sending orders, it requires that the cost be carried forward before the end of the month, all relevant documents must be entered. Therefore, before the end of the month, the user should check whether all the relevant documents have been entered and whether the entered documents have been reviewed in a timely manner. In particular, if the price is changed, whether the price change form has been promptly entered and reviewed. These small mistakes will ultimately affect the accuracy of the material cost of the product.

2. Impact of inventory check at the end of the month on material costs. For material security reasons, enterprises may check warehouses on a regular and irregular basis. If the inventory quantity is not on time, the related data will be adjusted. This data adjustment will affect the material cost at the beginning of the period. Users should pay special attention to the impact of this event on material costs.

　4. Daily weighted average method.

Although daily and monthly weighted costs are only one word different, their complexity and accuracy cannot be the same.

For example, in early November, the inventory cost of a certain material is zero. In November 5, 500 pieces were added at a unit price of 5 yuan, and November 10 pieces were added at a price of 5.5 yuan in 400. In November 8, the workshop took 300 pieces; In November 15, the workshop took another 400 pieces.

The basic idea of the daily weighted average method is to calculate the material cost for each purchase, which is related to the quantity and price adjustment of the purchase.

When purchasing goods in November 5, because there is no inventory at the beginning of the period, the material cost is calculated at the price of 5 yuan. The total inventory material cost is 2500 yuan. The unit material cost is 5 yuan.

In November 8, the raw material cost was calculated based on the unit material cost in November 5. In November 8, a total of 300 pieces of materials were collected, that is, the cost of materials was 1500 Yuan, and the cost of materials in stock was 2500-1500 Yuan = 1000 yuan.

A weighted average calculation is performed during the data warehouse recording when the goods are purchased in March November 10. That is, (1000 + 400*5.5)/(200 + 400) = 5.33 RMB. When collecting materials in November 15, the hourly rate was 5.33. The cost of sending 400 pieces was 400*5.33 = 2132 yuan. The total cost of 700 pieces of materials in the month is 3632 RMB.

　　ERP operation considerations:

From the above calculation, we can see that the daily weighted average cost has a high requirement on the timeliness of documents. For example, if the picking ticket for June 1 is not reviewed in time on the same day, the cost and price will be different during review on June 1. Therefore, if you use the daily weighted average cost, you must enter the daily documents for review on the current day. Do not drag them to the next day.

From the four examples, we can see that the cost and price of the four calculation methods are different, but it does not mean which method is accurate, and other methods are wrong. It is only because the accounting methods are different. Enterprises can choose based on their familiarity or accuracy requirements. In general, the weighted average cost is more accurate than the other two methods, and the daily weighted average cost is higher than the monthly weighted average cost. Of course, with the improvement of precision, the requirement for management level also increases.

Therefore, you must determine between the two and select an appropriate method. However, it should be noted that, once the method is determined, no adjustments should be made within a short period of time. The consistency of accounting methods is not only a requirement of the accounting management system, it is also the requirement of ERP for cost accounting.

After reading this, the original algorithm of the developed program is "Daily weighted average". As a result, the cost difference in financial accounting is 0.16. I really don't know. How can this problem be solved? change it to "first-in-first-out", and check the batch number again.