Inventory Valuation

Inventory valuation values the on-hand inventory for a specified date. The following valuation methods are supported:

• FIFO - First in, first out.
• Last Cost - Valued according to the cost of the most recent item purchase.
• Weighted Average - Average cost of all transactions for an item for the valued period.

To perform an inventory valuation:

1. Click the Calculate Inventory Valuation link from the Main Menu. The Calculate Inventory Valuation screen opens.
2. Enter the necessary information:
   • Action - Determines if it is an Interim or Final valuation. Selecting Interim does not mark the inventory transactions as included in the valuation. Selecting Final sets the Last Final Valuation date and marks inventory transactions as included in the valuation. You can run as many interim valuations as you desire. Once you run the final valuation, the inventory transactions are marked and are not included in any future valuations.
   • Method - Method to calculate the inventory valuation. Defaults to the inventory valuation method selected in the Inventory Configuration screen. 
   • Valuation Date - Inventory transactions up to and including the entered date are included in the valuation.
3. Click Process. The inventory valuation runs and a blue Changes Saved message appears when complete.

Inventory Valuation Report

The Inventory Valuation Report provides a monetary value of inventory items. It compares the perpetual value to the valuation amount based on the figures created by the Calculate Inventory Valuation process and displays the percentage variance between these amounts.

The perpetual balances update any time a transaction is processed. It increases or decreases based on the quantities and total cost value of the transaction. These balances calculate on issue and receipt of inventory.

The valuation amount is the value calculated according to the Calculate Inventory Valuation process.

The last column of the report (Avg) is the unit average according to the calculated value (divided by the quantity) depending on the selected valuation method (FIFO, Last Cost or Weighted Average).

To run the Inventory Valuation Report:

1. Click the Inventory Valuation link from the Main Menu. The Inventory Valuation screen opens.
2. Enter the necessary information:
   • Fiscal Period – Fiscal period for the report.
   • Space – Items assigned to spaces (Locations tab on the Edit Inventory Item screen) matching the selected group(s) are included in the report. 
   • Major Groups – Items assigned to major inventory groups matching the selected group(s) are included in the report. 
   • Minor Groups – Items assigned to minor inventory groups matching the selected group(s) are included in the report. 
   • Product Groups – Items with product groups matching the selected product group(s) are included in the report.
   • Departments – Items assigned to departments matching the selected department(s) are included in the report.
   • Omit Variance Amounts Below – Omits items with a variance between the perpetual value and calculated valuation below the entered percentage. All items display if left at 0.0000.
   • Use Graybar Effect – If checked, highlights the major groups the report is grouped on in grey.
3. Click OK. The report open.

Inventory Valuation Security

Running the inventory valuation is controlled by the Run Inventory Valuation access privilege. Any roles/users assigned to the privilege can run the inventory valuation while any roles/users not assigned to the privilege cannot run the inventory valuation. If no roles/users are assigned to the privilege, it is considered inactive and all roles/users can run the inventory valuation.

Troubleshooting

When attempting to calculate inventory valuation, if you receive a message that you cannot value the inventory at this time because there are unposted inventory transactions, verify all the transactions are posted in the Inventory Transactions screen. If all the batches are posted, you need to post your unposted inventory batches.

1. Click the Unposted Inventory Transactions link from the Main Menu. The Unposted Inventory Transactions screen opens.
2. Use Ctrl+Click, Shift+Click or click and drag to select all the transactions.
3. Right-click and select Tools -> Post. The Unposted Inventory Transactions Post Summary screen displays when the post process is complete. If the transaction failed to post, the reason displays in the Reason column. If you receive a message that the transaction is not posted because it does not have a valid fiscal period or year, see Unposted Inventory Transactions.

You can now return to Calculate Inventory Valuation and proceed with the valuation process.