How to modify the moving average cost for a FIFO or a Lot product

1 minute read time.

Have you ever run into a situation where it requires you to change or modify the average cost of a product after receiving the product with a certain cost. If so, in Sage X3, there is a utility called Value Change, and it is designed to change the cost. This value change utility is located in Stock, Utilities, Valuation and is used for products with average cost valuation to change the average cost at a specific date which in this case would be the posting date of the value change transaction. It is used to modify the moving average price value for the lines in the FIFO tiers and for lots. The created movements are generated based on the context of the change.

A few things to note prior to use the value change utility:

  • No value change can be processed on a null stock
  • Value change utility is not designed for a product with a standard cost valuation method
  • The auto journal code can be left blank to prevent posting of the value change movements to the General Leger

When modifying the moving average price, the FIFO tiers and lots will be updated with the new value. However, if the Distribution is set to No, only the moving average price will be modified. If the distribution is set to Value, this will increase the amount of each FIFO tier or lot so the global amount is increased by X%. If the Distribution is set to Quantity, the increase of the FIFO tier or lot is prorated based on the quantity of each tier/lot so the global amount is increased by X%.

The value change movement updates can be found in Stock, Inquiries, Movements, Stock transactions. Clicking the Criteria button and checking the Value change box under the Movements block will display the results.

The Stock transactions inquiry will show the movement type as a Value change, the Entry type and Entry number, the movement value and variance, the Accounting document number and other information as well.