Calculation of Inventory Value

This process is used to calculate financial inventory value for internal accounting. Either acquisition value or actual value can be used as inventory value, depending on which is lower.

Before you start

Follow these steps

  1. Create inventory valuation proposal

    Inventory valuation proposals are created in 'Inventory Value. Open' (CAS180). The information is defaulted from the supplier or item agreements, the item file, and from Product Costing.

    If net sales value is used as inventory value, the future depreciation of net sales values is also calculated. The necessary parameters for this must be set in 'Settings - Inventory Valuation' (CAS025).

  2. Review inventory valuation proposal

    The inventory valuation proposals are printed from 'Inventory Value. Open' (CAS180) for review. The basic data, the calculation method for acquisition or actual value, and new inventory values can all be changed in a proposal. Several proposals can be processed simultaneously to determine the valuation results using different methods.

  3. Approve inventory valuation proposal

    The proposal can be approved when no more changes are needed.

  4. Update general ledger

    The approved inventory valuation proposal can then update the general ledger using 'Inventory Value. Open' (CAS180). An accounting journal is then printed.

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