Inventory Valuation Report
What is the difference between Inventory Valuation and Inventory Audit report? I had just posted a question re: determining the total value of our in-stock inventory (total dollar value) ending in 9/30/08.
We used Inventory Audit Report to determine this, but should we have used Valuation? When we tried the Valuation report we did not get any results.
Gordon Du replied
The difference can be found from online help:
*Inventory Audit Report *
This report provides an audit trail for the posted stock transactions in the chart of accounts.
You use this report to make comparisons between the accounting view (stock balance accounts) and the logistics view (stock value displayed by the audit report). The report explains the value changes in stock accounts.
This report does not recalculate the cost but displays the information from the database.
The report is available only for companies using the perpetual inventory system.
*Inventory Valuation Report *
If you work with perpetual inventory, you can use this report to valuate the entire warehouse inventory of all items on a reporting date. You would normally valuate the warehouse inventory on the balance sheet reporting date.
This report is intended as a managerial report to check what-if scenarios. For instance, you can see what happens if you value an item based on a different costing method. This report is not intended to be used as a report for auditing. For auditing purposes use the Inventory Audit Report.
You can select one of the following calculation methods for inventory valuation:
● Moving Average
● By Price List
● Last Evaluated Price
You can also define various criteria to restrict the selection for inventory valuation.
You can choose a different valuation method for warehouse inventory valuation, if necessary, and you can also transfer the results to accounting. If you use the moving average price method, you calculate the same values as in the accounting module. Once you have selected a valuation method, we recommend that you continue to use the same method.