Indicate Supplier Invoice Consideration Level

Explanation

Use this activity to define the supplier invoice consideration level that is used as the default setting for all new inventory parts entered on the site. It is required to perform this activity, and it should be performed by a system administrator or a person in a similar capacity.

The supplier invoice consideration levels are:

Value Description
Ignore Invoice Price Could be used for all inventory valuation methods and cost levels. The supplier invoices will not affect the inventory value. Price differences will be booked when the invoice is matched.
Periodic Weighted Average Could only be used together with the valuation method Standard Cost. Price and manufacturing differences will be used to calculate a weighted average on a periodical basis.
Transaction Based Could only be used together with the valuation method Weighted Average. The supplier invoice price will be used to re-calculate the weighted average on a transaction based level.

Prerequisites

This activity has the following prerequisites:

System Effects

As a result of this activity: