This document provides steps to create a Power Pivot data model for inventory valuation using average costing. It involves linking data tables for inventory, forecasts, and item lookups. Measures are then created in the data model to calculate values like quantity, total value, price per unit, and differences from prior month prices. The measures dynamically update as the user changes the date selected in a pivot table slicer connected to a calendar date table.

1. Power Pivot & Average Cost
for Inventory Valuation
Benjamin Wann

2. Step 1- Create or link to a data table
• Add table to Data Model
• Name the table
• Format all data as a table

3. Step 2- Create a Forecast Table
• For each SKU, include at least one target cost estimate
• Repeat same steps from Step 1 to format and add to Data Model

4. Step 3- Create an Item lookup table
• For each SKU number, include the item description
• Follow previous steps, add name, and add to Data Model

5. Step 4- Part 1- Open the Data Model
• If you haven’t done so yet, you can enable Power Pivot in Excel with
the instructions here,
• https://support.microsoft.com/en-us/office/start-the-power-pivot-
add-in-for-excel-a891a66d-36e3-43fc-81e8-fc4798f39ea8

6. • Open the Data View
• Under Design, add a new Date Table
Step 4- Part 2- Open the Data Model

7. Step 4- Part 3- Open the Data Model
• Select the Diagram View
• Connect Calendar-Date to InvData-
Date
• Connect ItemLookup-Sku to InvData-
SKU
• Connect Forecast-SKU to InvData-
SKU
• Connect Calendar-Date to Forecast-
Month Year

8. Step 5- Part 1
• Create a pivot table back in Excel using InvData as the source
• Add field Calendar-Month Year as a slicer

9. Step 5- Part 3
• In the Pivot Table, add the following fields
• Calendar- Month Year
• InvData- SKU
• ItemLookup- Description

10. Step 5- Part 2
• Create your measures
• Measure 1: Quantity Measure =sum(InvData[Quantity])
• Measure 2: Total Value =sum(InvData[Total Cost])
• Measure 3: Price per Unit =DIVIDE([Total Value],[Quantity Measure],0)
• Measure 4: SP LM (same price last month) =CALCULATE([Price per
Unit],DATEADD('Calendar'[Date],-1,MONTH))
• Measure 4: Forecast Value =sum(InvData[Forecast])
• Measure 5:SP L3 Avg (avg of price for last 3 months) =CALCULATE([Price per
Unit],DATESINPERIOD('Calendar'[Date],lastdate(InvData[Date]),-3,month))
• Measure 6: Difference Actual vs PM =[Price per Unit]-[SP LM]
• Measure 7: % Diff Actual vs PM =DIVIDE([Difference Actual vs PM],[SP LM],0)

11. Step 6- Finish
• As you change the date selected in the slicer, the measures all adjust
accordingly.