Your pricing method is FIFO. You approve a credit note valued at 100 USD associated with purchase order 10003. Before you approve the credit note, the R5FIFO table contains the following information:
|
Quantity in store |
Price |
Purchase order number |
|
1 |
8 USD |
|
|
6 |
10 USD |
10003 |
|
3 |
12 USD |
10004 |
|
10 |
12 USD |
10003 |
Datastream 7i locates the 6 parts at 10 USD from the original purchase order 10003 in the R5FIFO table and applies 60 USD of the 100 USD credit to the value of the stock, reducing the stock value to 0 USD. Since 40 USD from the credit note still needs to be applied, Datastream 7i locates the 10 parts at 12 USD that are also associated with the original purchase order 10003 and calculates the new price of the stock based on the credit note using the following equation:
[(10 x 12) – 40] / 10 = 8 USD
After approving the credit note, the R5FIFO table contains the following information:
|
Quantity in store |
Price |
Purchase order number |
|
1 |
8 USD |
|
|
6 |
0 USD |
10003 |
|
3 |
12 USD |
10004 |
|
10 |
8 USD |
10003 |