Dear Experts,
Our client is using perpetual invetory and FIFO valuation method in SAP B 1 v. 9.0 PL15.0 . Moreover we are using BOMs up to 3 levels as there are 3 production stages.
I would like to ask if the execution of 'Update Parent Item Prices Globally' affects the actual cost of the final product.
For example, item A is a component of item B and B is a component of item C.
If the purchased price of item A changes this will affect the cost of item B and therefore the cost of item C.
Our question is if the production cost of the items B and C will be affected automatically when we will use the new priced item A (because we are using FIFO) or if it is necessary to execute the 'Update parent prices globally' .
If not is there any another functionallity that must run in order to take into account the new price of item A?
Thank you in advance for your help.
Kind Regards,
Vasilis Korolis