Performing stock valuations

Process section

Valuation method per item

Select this check box to process the stock valuation using the valuation method defined for each item.

Note:

• This is available only if you have selected the Valuation method per item check box at Systems ➔ General ➔ Settings, under Inventory settings.
• The valuation method for an item is defined at Valuation method under the Financial section of the Financial tab of the corresponding item maintenance card. For more information, see Creating and maintaining items – Financial tab.

Valuation method

Select one of the following stock valuation methods:

• Average purchase price — This method uses the average purchase price to process the stock valuation. It takes the average purchase price of inflow transactions and updates the stock value of outflow transactions. The logics for this method are:
  • The returns of materials from production will be evaluated at the same price as the original issues, as in the returns of sales.
  • The returns and scrap of end products or by-product from production will be evaluated at the same price as the original receipt.
  • Historical transactions will be revalued with the same logic. Thus, the stock value might not be the same before and after the latest logic is implemented. To avoid this, select the Stock valuation as from last revaluation check box at Systems ➔ General ➔ Settings, under Inventory settings before performing this method of stock valuation.
• Standard Cost Price (SCP) — This method uses the standard cost price to process the stock valuation. It takes the cost price of the inflow transaction and updates the current stock value.
• First-In-First-Out (FIFO) — This method uses the order in which the transaction occurs to process the stock valuation. It assumes that the first inflow item is the first one used. This method takes the purchase price of the first item used and updates the current stock value when an outflow transaction occurs.
• Last-In-First-Out (LIFO) — This method uses the order in which the transaction occurs to process the stock valuation. It assumes that the last inflow item is the first one used. This method takes the purchase price of the last item used and updates the current stock value when an outflow transaction occurs.
• Actual costing — This method is available only if you have selected the Valuation method per item check box  at Systems ➔ General ➔ Settings, under Inventory settings. This method uses the actual cost of the item based on the purchase price registered on the serial or batch number upon receipt. It is applicable to serial or batch items only.

Note:

• This is not enabled if you have selected the Valuation method per item check box.
• If you have selected FIFO or LIFO, and select the Cost price and stock valuation per warehouse check box at Systems ➔ General ➔ Settings, under Inventory settings, the stock revaluation is executed by warehouse. This means that the stock valuation is performed by examining all inventory transactions for an item per warehouse. This option allows you to process the inventory transactions and update the new stock value for each warehouse individually. The inventory transactions for the main warehouse are usually processed first. Stock valuation is usually performed for each warehouse individually when the respective warehouse has its own administration and cost centers.
• If you have selected FIFO or LIFO and clear the Cost price and stock valuation per warehouse check box at Systems ➔ General ➔ Settings, under Inventory settings, the stock revaluation is executed by all warehouses. This means that the stock valuation is performed by examining all inventory transactions for an item regardless of the warehouse. This option allows you to process the inventory transactions in the order they are recorded (earliest to the latest transaction date) regardless of the warehouse the transaction is recorded for.

Criteria section

Reporting date/Transaction date, to

Type or select a reporting/transaction date or a range of reporting/transaction dates to perform the stock valuation on transactions with the defined dates. Select the All check box to perform the stock valuation on transactions with all dates. Transaction dates are the actual dates of the inventory transactions whereas reporting dates are the dates the inventory transactions are recorded in the general ledger. The transaction and reporting date can differ, for example if you receive an order of goods on 01/01/2013 and then process the receipt on 02/01/2013, the transaction date is 01/01/2013 and the reporting date is 02/01/2013.

Note:

• Reporting date will be displayed if you have selected Reporting date at Check: Closed periods under the Period and year control section at Systems ➔ General ➔ Settings, under General settings, and clear the Stock valuation as from last revaluation check box at Systems ➔ General ➔ Settings, under Inventory settings.
• Transaction date will be displayed if you have selected Date at Check: Closed periods under the Period and year control section at Systems ➔ General ➔ Settings, under General settings, and the Stock valuation as from last revaluation check box at Systems ➔ General ➔ Settings, under Inventory settings.
• When the stock valuation is performed based on the reporting date, the stock valuation function will retrieve the inventory transactions in order of the reporting date and process the inventory transactions according to the reporting dates.
• If the Stock valuation as from last revaluation check box at Systems ➔ General ➔ Settings, under Inventory settings is selected, the stock valuation takes the last revaluation transaction as a starting point. In this case, transactions that are recorded prior to the last revaluation transaction do not need to be valued again and will have no impact on subsequent transactions. Since the last revaluation transaction is used as a starting point, the transaction date is no longer applicable.

Item group, to

Type or select an item group or range of item groups to perform the stock valuation for the defined item group(s). Select the All check box to perform the stock valuation for all item groups.

Item, to

Type or select an item code or range of item codes to perform the stock valuation for the defined item(s). Select the All check box to perform the stock valuation for all items.

Make item

Select Make or Non-make to perform the stock valuation for make or non-make items respectively. Select All to perform the stock valuation for both make and non-make items.

Level

Select the level to perform the stock valuation for items with the defined low level code.

Assortment

Select the assortment(s) to perform the stock valuation for the items linked to the selected assortment(s).

Note: The number of Assortment fields displayed depends on the number of assortments defined at Inventory ➔ Items ➔ Assortments or System ➔ General ➔ Settings, under Item data settings.

Revalue positive counts section

If you have selected the Valuation method per item check box, you will see the Zero amounts (APP), All amounts (APP), Zero amounts (SCP), and Zero amounts (FIFO/LIFO/Actual costing) fields:

Zero amounts (APP)

Select this check box to revalue the positive count transaction using the average purchase price method with the cost price or purchase price. Once selected, the following options will be enabled:

• Cost price — Select this to revalue the positive count transaction based on the cost price.
• Purchase price — Select this to revalue the positive count transaction based on the purchase price.

All amounts (APP)

Select this to revalue the positive count transaction using the average purchase price. Once selected, the APP option is enabled.

Zero amounts (SCP)

Select this to revalue the positive count transaction using the standard cost price. Once selected, the following option will be enabled:

• Cost price — Select this to revalue the positive count transaction based on the cost price.

Zero amounts (FIFO/LIFO/Actual costing)

Select this check box to revalue the positive count transaction using the FIFO, LIFO, and Actual costing method with either the cost price or the purchase price. Once selected, the following options will be enabled:

• Cost price — Select this to revalue the positive count transaction based on the cost price.
• Purchase price — Select this to revalue the positive count transaction based on the purchase price.

If you have not selected the Valuation method per item check box, you will see the Zero amounts and All amounts fields. These two fields only apply to the registered positive stock counts that have not been revalued. For more information on stock revaluation, see Stock revaluation.

Zero amounts

Select this check box to revalue the positive count transaction using the cost price or purchase price of the item. Once selected, the following options will be enabled:

• Cost price — Select this to revalue the positive count transaction based on the cost price.
• Purchase price — Select this to revalue the positive count transaction based on the purchase price.

Note: Purchase price is available only if you have selected Average purchase price, FIFO, LIFO, or Actual costing at Valuation method.

All amounts

Select this check box to revalue the positive count transaction using the average purchase price of the item.

Note: This is available only if you have selected Average purchase price at Valuation method.

Report section

Report

Select one of the following report format options:

• None — Select this if you do not want to print a copy of the report after processing the stock valuation.
• Totals only — Select this to generate a stock valuation report that displays the summary of information such as items, current available stock, the previous and current stock value, and the old and new cost price.
• Detailed information — Select this to generate a stock valuation report that displays the detailed information by item, the respective list of the inventory transactions for the item, the calculated stock value, and the new cost price.

Preview

Click this to view the stock valuations in Microsoft Excel.

Note: This is enabled only if you have selected Totals only or Detailed information in the Report section. There are two types of production order namely normal and disassemble. Each production order has different types of production transaction.

• Production order: Normal
  • Production receipt of end product and by-product
  • Production issue of material
  • Production return of end product and by-product
  • Production return of material
  • Production scrap of end product and by-product
• Production order: Disassemble
  • Production receipt of material
  • Production issue of end product
  • Production return of material

Process

Click this to perform the stock valuations. This will also update the new stock value (cost price) for each item. You will be able to see the current stock value and the new cost price in a Microsoft Excel worksheet.

Note: This is enabled only if the valuation method selected in the Process section is the same as the valuation method defined at Valuation method at Systems ➔ General ➔ Settings, under Inventory settings. During stock valuation, the related production transactions will be updated with the actual cost. The production accounts are defined in the following locations:

Close

Click this to exit.