Stock item valuation fundamentals

By default all warehouse (shelve) contents are having an exact valuation history!

Whenever items enter or leave stock, a valuation is attributed to them and added/deducted to/from an inventory account. The sum of all goods on all warehouses must at any time reflect the sum of all inventory accounts.

Valuation of items leaving stock

Regular leave event (shipment)

Items leaving the stock can be booked out of stock by the moving average or at their current valuation of the shelve contents taken. When quantites are taken out of stock at any value other than the current valuation of the taken shelve contents, this has to reflect on the valuation of the other items. If the value is higher than the value of the effective value, the other items have to

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.

Moving average item grouping options

The moving average price

Similar items can be defined during stocktaking to be:

• exactly identical items (same article / same variant)
• same article
• same article, same variant group (Standard variant / Special variant / Made2Measure-Variant)