> Example

Your pricing method is FIFO. You need to return 10 air filters from a work order to store. At the time of the return, the R5ISSUES and R5FIFO table contain the following information:

To cover the return quantity, Datastream 7i locates the 5 parts inserted into R5ISSUES on 1-APR-2002 at 10 USD each, returns them from the work order to store, inserts a record of 5 parts at 10 USD into the R5FIFO table, and deletes the record of the 5 parts at 10 USD from the R5ISSUES table. Datastream 7i then locates the 3 parts inserted into R5ISSUES on 4-MAY-2002 at 8 USD each, returns them from the work order to store, inserts a record of the 3 parts at 8 USD into the R5FIFO table, and deletes the original record of the 3 parts from the R5ISSUES table.

There are no equivalent issues remaining from which to fulfill the return quantity, and 2 parts are still needed to fulfill the return quantity of 10, so Datastream 7i then locates the records that existed in the R5FIFO table before the return and calculates the weighted average price of the parts using the following equation:

[(1 air filter @ 8 USD) + (2 air filters @ 7 USD) + (2 air filters @ 9 USD)] / 5 = 8 USD

Datastream 7i returns the remaining 2 parts using the price of 8 USD and inserts a new record of 2 parts at 8 USD in the R5FIFO table.

Datastream 7i calculates the transaction price of the return using the following equation:

[(5 air filters @ 10 USD) + (3 air filters @ 8 USD) + (2 air filters @ 8 USD)] / 10 = 9 USD

After completing the return from work order to store, the R5ISSUES and R5FIFO tables contain the following information: