Processing the Revaluation

Report

Select this action to rerun the currently selected reports for the last generated snapshot.

Final

Once you have finished verifying and assessing the potential impact of the revaluation, you can start the final processing of the revaluation. Select Final from the Action menu.

The snapshot is recreated and any selected reports are run. The inventory transactions standard costs ledger and the item standard costs are updated as specified by the parameters on the inventory revaluation.

If the generate is successful, an information message is displayed to inform you that the process has completed normally.

After this point the revaluation cannot be amended or processed further.

Uwaga: Another revaluation can be run for the same period. If the same receipt or issue are selected for the new revaluation, the effects of this are overwritten by the new revaluation.

Uwaga: If the revaluation results in no inventory being found, the following message is displayed, Nothing was extracted for this inventory revaluation run, and no further processing takes place. The revaluation is not set to complete, but remains open. You should be aware that in this situation the item standard costs are not updated.

Generate

When you are satisfied that the details and selection criteria are correct, select the Generate action to initiate the revaluation.

The status of the revaluation is changed to Active. The revaluation and current period transactions are selected to generate a snapshot of movements with both old and new costs.

The revaluation data is saved and you can exit the function at this stage.

If an active revaluation already exists for the same revaluation period, a warning message is displayed. Click OK to continue processing - this overwrites the existing active revaluation; or click Cancel.

If the generation is successful, an information message is displayed to say that the process has completed normally. Click OK and you are returned to the Inventory Revaluation form.

Uwaga: The Inventory Module and Financials Ledger are not updated by this action.

Void Revaluation

You can void the revaluation by selecting this action. This clears the information you have entered on the current form, so you can start again. The status is changed to Cancelled. The revaluation is no longer open and cannot be amended or processed further.

Validate

You can validate the revaluation by selecting this action.

Pre-Pass-Check

This action enables you to check that the journals to be posted to the ledger for the currently generated snapshot will be generated correctly. It carries out a ledger posting of the journals with the posting type parameter set to Validation Only Run. Any problems found can then be corrected before the final processing is done.

The Generate action must have previously been run prior to selecting this action.

The Pre-Pass-Check, therefore, carries out much of the processing that is done as part of the final processing, but without actually updating the system.

The results of the Pre-Pass-Check are shown on the Inventory Revaluation Exception Report.

If the check is successful and no errors are found, an information message is displayed to say that the process has completed normally. Click OK and you are returned to the Inventory Revaluation form.

Assessing the Revaluation

When you have generated the revaluation data, you need to assess the impact that the final processing will have on your system before you select the Final action. You can do this by producing and reviewing the available reports.

For allocatable items, and for each eligible transaction, the report includes a revaluation quantity which is the quantity on-hand at the end of the revaluation period. The revaluation amount is the revaluation quantity multiplied by the difference between the current and new standard costs.

For non-allocatable items, the report includes a revaluation quantity for each item/location combination, which is the quantity on-hand at the end of the revaluation period. The revaluation amount is the revaluation quantity multiplied by the difference between the current and new standard costs.

Uwaga: The new standard costs are derived from the user defined cost set associated with the revaluation.

The system also calculates the revaluation value which represents the impact of the cost change. This is calculated as follows: ((revaluation quantity multiplied by new standard cost) minus (revaluation quantity multiplied by current standard cost)).

The currency setting is taken from the revaluation profile. That is, whether the revaluation will use the base currency values or reporting currency values as a basis for calculations. If base currency values are used, the reporting currency revaluation values are calculated using either a user defined cost record for that currency, if one exists, or by using the rate entered at run time. However, the revaluation amounts in the snapshot are derived from the transaction and item user defined costs. Accordingly, these values may be different. If reporting values are used as the basis, the converse is true and the base currency revaluation amounts may be different.

As part of the final processing, all receipts and issues in the revaluation period are updated with the new standard cost. This ensures that any reporting amounts based on the inventory movement costs are in line with the revised amounts in the ledger, following the revaluation. The unit standard cost is updated to reflect the new standard cost. The line value is updated to reflect the revaluation quantity at the new standard cost. That is, the quantity on-hand at the end of the revaluation period.