Stock Valuation

Ref: AG3_402 / AG3_403

 

Description

 

This report produces a table showing the value of stock items. The values are displayed on the three cost prices held in the system against inventory items. The report can be run in 2 different modes, valuation by item or valuation by store. The difference between the two is the grouping method, being either grouped by item or items grouped by store.

 

 

 

 

The report returns

 

In either mode the data returned is the same, with the exception that when running the ‘valuation by store’ the store is also displayed in the group header.

 

Item code (Inventory Item code)

Description (Inventory item description)

Stock UOM (UOM for the inventory item)

Standard Price

Average Price

Last Price

Store

Qty (Quantity currently in stock)

Standard (Item valuation at standard price)

Average (Item valuation at average price)

Last (Item valuation at last price)

 

Operational Criteria

 

The report will return all stock inventory items that require stock to be order and that meet the filter criteria selected.

 

Filters

•    Inventory Item Range Filter

•    Store Range Filter

•    Supplier Range Filter

•    Category

o  Category of inventory item

•    Section

o  Section from inventory item

•    Sub-Section

o  Sub-section from inventory item

 

Calculations

 

In each instance, Standard, Average and Last the stock valuation for the item is calculation by;

 

Price x Quantity in Stock

 

Aims

The report is designed to produce an accurate monetary inventory valuation with the ability to break down the valuation by use of the filter criteria.

 

This is useful in the production of accurate financial statements and asset valuation.

 

Results Analysis

 

The results from a stock valuation can be used to identify areas where a large monetary value of stock is being held.

 

By using these results in conjunction with the usage analysis report it is possible to identify items of high cost where a large quantity is in being held stock, but usage is infrequent which equates to ‘money sat on a shelf’, so by then adjusting the minimum and maximum stock values in the system, fewer will be ordered resulting in a cost saving.

 

Alternatively it can also be used to identify where  the same items are held at multiple stores, one store may be overstocked but the other store has low stock, a stock transfer can be performed, which avoids having to re-order items and resulting in a cost saving.