Inventory valuation method

[Former Member]

Hi all,

Can any one provide me what is inventory valuation method & how to config it & what are the impacts

pl revert asap.

manisha

[former_member583013]

There is nothing to configure in this report.

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:

<li> Moving Average

<li> FIFO

<li> LIFO

<li> By Price List

<li>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.

Suda

[Former Member]

Hi suda,

I am looking from configuration point of view Not the reports.If i set the inventory valuation method in basic initialization.

pl revert.

Manisha

[former_member1190345]

Manisha,

The inventory valuation method basically decides how the Inventory is valued.

1. Moving average: here the inventory is valuated by items cost price. This field is updated dynamically by every stock receipt posting.

2. Standard Price: choose this option to calculate the inventory value by a fixed price. The item's standard price should be set before you start working in your company.

3. FIFO: choose this option to calculate the inventory value by the FIFO method (first in first out). Each inventory receipt transaction creates a "layer" of quantities linked to costs; each inventory release transaction will use quantities and their corresponding costs from the first open layer/s

Nagesh.

[carlos_silva3]

I tried issuing this report for Moving Average and got an error message 901-4: "Value of item cannot be calculated with the same valuation method selected for the item; generate the Inventory Audit Report".

Must add that on Basic Initialization I checked the Manage Item Cost By Warehouse parameter.

Now a question: could this report be used to load the inventory values on a new DB if we need to change the valuation method and/or costing by warehouse?

Thanks,

[former_member583013]

You can certainly use this report as a base line for you new database