Stock item valuation fundamentals

By default all contents within a warehouse are having an exact valuation history

Valuation of items leaving stock

Items leaving the stock can be booked out of stock by the moving average or at their current valuation of the shelve contents taken.

Valuation of newly added items

Items added through regular stock intake

Items can be added to stock through a regular stock intake. When using this method, there is always a price attached with the intake.This can be either:

• purchase order - the price defined in the purchase order
• return order from a customer - the price tag with which the item was shipped to the customer

Stock intake revaluation

Once items are taken into inventory, these goods are attached the valuation. Still for some reasons retroactive price changes can occur, e.g. if the purchase price is lowered through post-purchase negotiations. This means that:

• the valuation of these changes have to change
• consecutive transactions, which used this price will have to become adjusted as well (e.g. handouts to internal costcenters, which happen at the current valuation of the item)

Stocktaking newly "found" quantities

When items are found during stocktaking, these items create new value. This can be

• booked as profit
• avoided by booking the new items with the value 0.
• avoided by lowering the value of other similar items on stock by the averaging in the value of the item, so that the quantity changes but the total stock valuation does not change. Similar items can be defined during stocktaking to be:
  • exactly identical items (same article / same variant)
  • same article, same variant group (Standard variant / Special variant / Made2Measure-Variant)
  • same article