Specific valuation method in Acumatica with landed cost (Serial Item case)
The Specific valuation method in Acumatica is used to value serialized and lot items. Refer here for the definition.
I once had an issue with another ERP where the landed cost was split equally to all existing serial numbers. And the customer was not happy at all, that would have been the solution for the customer.
I once had an issue with another ERP where the landed cost was split equally to all existing serial numbers. And the customer was not happy at all, that would have been the solution for the customer.
Scenario
- Bring in 2 serial items at the value of 1000 each, then later on another 1 with a landed cost of 200 (for each Serial Item).
- The items master file shows as below: SN001 with FIFO and SN002 with Specific valuation method
The Lot/Serial Number report display the difference between FIFO vs Specific:
Observation
What you will notice is that the FIFO redistribute equally the landed cost toward all existing serial item number. This behavior has been observed with different ERP, but what needs to be emphasized is that the principle of FIFO is respected on the basis that it is a financial transaction regardless of which serial number is selected when doing a sale.
However, the Specific method respects the allocation of landed cost and fix it to the relevant SN number. This is why it is the best option when dealing with the serial items and wanting to keep track of cost to designated lot/serial items.
The Demo
Then we continue to explore Acumatica ERP.
What you will notice is that the FIFO redistribute equally the landed cost toward all existing serial item number. This behavior has been observed with different ERP, but what needs to be emphasized is that the principle of FIFO is respected on the basis that it is a financial transaction regardless of which serial number is selected when doing a sale.
However, the Specific method respects the allocation of landed cost and fix it to the relevant SN number. This is why it is the best option when dealing with the serial items and wanting to keep track of cost to designated lot/serial items.
The Demo
