Part groupParts are organized into part groups. This field contains the group to which the part belongs. You are required to specify a part group.
The Part group field is shown both on the General tab and on the Financial tab. The General tab displays the group the part belongs to, but does not allow you to change it. The Financial tab does allow you to change the field value.
Note:
If stock is available for this part, the part group cannot be changed.
If the software is linked to accounting software, changing a part group may have financial implications, as part groups may be used to post entries to specific ledger accounts.
The VAT code is relevant if you are using the VAT search path, as the VAT code is required to successfully check the search path.
This statistical number is informational. It can be displayed on various lists, such as invoices.
Calculation unit, Calculation quantity
Use the Calculation unit field to specify the unit the price applies to. You can choose from the following options:
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This is the stock unit that has been set on the General tab of the Parts form. |
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Kilograms |
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Square meters |
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This is the purchase unit set on the Purchase tab of the Parts form. This option is only available for the calculation unit for the purchase price. |
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This is the sales unit set on the Sales tab of the Parts form. This option is only available for the calculation unit for the sales price. |
Once you have made your choice, the calculation unit is displayed in the field to the right of the Calculation quantity.
In the Calculation quantity field, specify the number of calculation units to which the price applies. To specify a price per 100 kg, for example, choose 'Weight' in the Calculation unit field, and then enter '100' in the Calculation quantity field.
Use this field to specify how the stock of the part is to be valued. You can choose from the following options:
The setting of this field is automatically copied from the part group to which the part belongs. You can, however, change the default part group for each part. This means that you can set the required stock valuation method for each individual part.
If you are using the 'Average purchase price' stock valuation method for a part, the stock valuation price is adjusted whenever the average purchase price is calculated. The new average purchase price will then become the new stock valuation price. When using the APP method, this stock valuation price is therefore not a fixed price as is the case when the 'Fixed valuation price' (FVP) stock valuation method is used.
If a part is valued based on the APP stock valuation method, the value of the FVP/APP field may change as a result of:
Read more about the calculation of the APP
Calculation of the average purchase price
The APP is a weighted average, as its calculation takes into account the ratio of the number of parts already in stock, and the number of new parts arriving. This is clear from the calculation formula:
New average purchase price |
= |
(Current stock quantity * Current average purchase price + Received stock quantity * Purchase price)/ (Current stock quantity + Received stock quantity) |
Example of calculation of average purchase price
Current average purchase price |
= |
$ 14 |
Current stock quantity |
= |
5 pieces |
Received stock quantity |
= |
2 pieces |
Purchase price |
= |
$ 15 |
New average purchase price = (5 * 14.00 + 2 * 15.00) / (5 + 2) = $ 14.29
Purchase order price versus purchase invoice price
When calculating the APP, both the purchase order price and the purchase invoice price are taken into account. When a part is received, Isah uses the purchase order price. Where necessary, a correction is posted at the time the purchase invoice is processed permanently if the actual price (the purchase invoice price) differs from the purchase order price upon receipt.
Purchase invoice price already known before receipt
Sometimes, the purchase invoice price is already known before the receipt of the goods has been processed. In that case, the APP calculation uses the purchase invoice price, provided that it is the last purchase invoice for the purchase order line, with authorization type 'Invoice line authorized; last invoice', and that the purchase invoice has been processed permanently.
This last purchase invoice may have been preceded by purchase invoices of the 'Invoice line authorized' authorization type. The prices posted in those processes are used to calculate an average purchase invoice price per piece. The formula used for this calculation is:
Average purchase invoice price per piece |
= |
(Sum of all total sums on invoice lines) / (Sum of all purchase invoice quantities) |
Partial receipts and purchase invoices
For partial receipts, the purchase order price is used to determine the new APP. Until the final invoice for a purchase order line has been processed, the APP is also calculated on the basis of the purchase order price. A different price on an earlier purchase invoice ('Invoice line authorized') for the same purchase order line therefore does not have any consequences yet.
If the last receipt has been processed (the receipts are then considered as financially complete), and the last purchase invoice is processed, any purchase invoices previously posted for the same purchase order line ARE taken into account. The formula used is the same as for the calculation of an average purchase invoice price per piece:
Average purchase invoice price per piece |
= |
(Sum of all total sums on invoice lines) / (Sum of all purchase invoice quantities) |
Registration of APP calculation
Whenever the average purchase price is recalculated, the recalculation data are saved for reference. These data are available on the Average purchase price form in the Parts module, Overviews folder. Any manual changes and any changes made by the Mass modify prices process are also registered on this form.
APP registration for all parts
In Isah, the average purchase price (APP) of all parts is calculated and saved. Only for parts for which the stock valuation method is 'Average purchase price', this price is also filled in in the FVP/APP field. For parts for which the stock valuation method is 'Fixed valuation price', the FVP/APP field is not adjusted after recalculation of the average purchase price.
It is possible, however, to use this average purchase price to adjust the FVP. To do so, use the Mass modify prices process, which you could run once a year, for example. This way, the FVP will be the same throughout the year, and once a year you use the average purchase price to adjust the FVP. If you still want to have the FVP for parts adjusted to the average purchase price on a continuous basis, you must change the stock valuation method for the part. You can only do so, however, when the stock of the part has run out.
APP calculation if negative stock is allowed
If the total current stock of a particular part is negative, the average purchase price of that part is recalculated all over again as soon as you register a receipt that brings the stock back up to a positive level. This calculation does not take into account the old average purchase price. The APP is calculated as follows:
Average purchase price |
= |
Purchase value / Quantity received |
If the above calculation is not desirable after the stock has reached a negative level, you must deselect the Allow negative stock check box.
Example of APP calculation after stock has reached negative level
Current average purchase price |
= |
$ 15 |
Current stock quantity |
= |
-10 pieces |
Received stock quantity |
= |
15 pieces |
Purchase price |
= |
$ 17 |
The new average purchase price is calculated as follows:
Note:
If Isah is linked to a financial application, a journal entry is created in the following situations:
- If the FVP/APP changes
- If the stock quantities change. The reason for this is that when the stock volume changes, also the stock value changes (Quantity * FVP/APP).
Isah does not take into account stock valuations in foreign currencies. Although it is possible to express an FVP/APP in a foreign currency, this price is immediately converted to your base currency in journal entries.
The value displayed in this field depends on the stock valuation method set for the part on the Financial tab of the Parts form in the Parts module. The available options are: fixed valuation price ('FVP') or average purchase price ('APP').
Note: To change the stock price, run the Change FVP or Change average purchase price process from the Edit menu. If the stock valuation is 'FVP', you can also change the price on the Prices tab (Stock field).
This is an informational field that cannot be modified. This field shows the sum of the stock lines that have been added via the Stock button. Stock quantities can only be changed using the Stock button.
This is an informational field that cannot be modified. The stock value is calculated automatically based on the current stock and the fixed valuation price or the average purchase price (depending on the setting of the Stock valuation field).
This is an informational field that cannot be modified. If you change the fixed valuation price or the average purchase price of the part, this field will show the previous fixed valuation price or average purchase price.
This is an informational field that cannot be modified. This field is filled in based on the data present in Isah. The last purchase price is known at the time a purchase invoice is permanently processed for a part purchased for stock. The sum recorded on the part line of the relevant purchase invoice will be calculated back to the financial calculation unit of the part, so that the information on the purchase invoice can be compared with the FVP/APP.
This is an informational field that cannot be modified. This is the current average purchase price of the part. It is also the price used to calculate the average purchase price.