Stock Value
Table Of Contents
WarningChanging the Stock Value Calculation Method, either globally through System Values - Stock - Valuation or individually through the Stock Detail Accounting Tab, does not retrospectively recalculate existing stock values.Stock values are only re-evaluated when the next Purchase Invoice for that item is posted.
Contents
- What is Stock Value?
- How do I keep my Stock Value up to date?
- How much is all my stock worth?
- Why are there differences between my Stock Nominal and Report?
- Setup Screens
- Accounts
- Stock Items
- Deferred Cost of Sales
What is Stock Value?
Stock Value is the financial value assigned to the stock you currently hold.
In simple terms, it represents what your inventory is worth based on the stock valuation method being used within Khaos Control.
How Do I Keep My Stock Value Up to Date?
Khaos Control supports four Stock Value calculation methods. These can be configured:
- Globally through System Values - Stock - Valuation
- Individually per item through the Stock Detail Accounting Tab
Average
Uses the item's Average Price.
The stock value is continually recalculated based on the average cost of goods purchased.
Best suited for
- Most inventory-based businesses.
- Businesses purchasing the same item at varying costs.
Standard
Uses a fixed value entered manually on the:
tab.
The value remains unchanged until manually updated.
Best suited for
- Stable-cost products.
- Businesses that prefer fixed standard costing.
Last Price Paid
Uses the most recent purchase cost.
When a Purchase Invoice is posted:
- The stock value is updated.
- The last invoiced purchase price becomes the new stock value.
Best suited for
- Businesses wanting stock valuation based on the latest supplier cost.
Average Price Including Build Costs
Designed specifically for Build and Unbuild stock items.
When a build is completed:
- The build value is stored against the stock movement.
- The Average Cost calculation includes these build values.
- The cost at the point of the build contributes to future stock valuation calculations.
This ensures the full cost of manufacturing or assembly activities is reflected in stock values.
Notes
- Incorrect build values will affect future stock calculations.
- Build values cannot be amended after posting.
- The functionality applies to both Build and Unbuild operations.
- Average costing must be used to benefit from this feature.
- Only one active Build or Move With relationship may exist against a stock item.
- For non-build items, this method behaves in the same way as standard Average Price costing.
See:
How Much Is All My Stock Worth?
There are two primary methods of reporting stock value.
Stock Value Reports
Using the:
Khaos Control calculates:
Quantity Held × Current Stock Value
This provides a snapshot of the total estimated value of all stock currently held.
Stock Nominal Account
The:
holds the accounting value of purchased stock.
How It Works
When stock is purchased:
- Value is posted into the Stock Nominal account.
When stock is sold:
- Value is removed from the Stock Nominal.
- Value is transferred to the Stock – Cost of Sales nominal account.
Stock Received Not Invoiced (SRNI)
If using:
the Stock Nominal is updated when goods are received using the Purchase Order value rather than waiting for the Purchase Invoice.
Why Are There Differences Between My Stock Nominal and Stock Value Report?
There are several reasons why the Stock Nominal balance and Stock Value reports may not agree.
Common causes include:
- Incorrect stock values.
- Outstanding invoices.
- Stock adjustments.
- Build and Unbuild activity.
- Costing method changes.
- Timing differences.
- Opening balance issues.
- Cost of Sales postings.
For detailed guidance, see:
Setup Screens
System Configuration
- System Values - Stock - Valuation
- System Values - Accounts - General
- System Values - Sales - Invoice Management
- Average Price
Security and Maintenance
Stock Value Investigation
Accounts
General
Useful stock valuation reports and screens include:
- Accounts Overview
- Historical Valuation
- Stock Value Aged Analysis
- Stock Value Period Analysis
- Stock Value by Site
Related Stock Screens
How To Guides
- How To: Enter Opening Balances
- How To: Use Sites
- How To: Enter Stock Opening Balance
- How To: Create a Stock Value Report
- How To: View Stock Sales and Levels Across Sites
Stock Items
Useful related articles:
- Stock List Tab
- Stock Detail Relationships Tab
- Value Proportion
- Stock Adjustments Tab
- How To: Create a New Stock Item
- Stock Detail Options Tab
- How To: Create a Packaging Stock Item
- How To: Create a Pack
- How To: Create a Build Stock Item
- How To: Unbuild a Built Item
- Stock Detail Options: COS Excluded
- How To: Use Miscellaneous Stock Items
- Stock Value Differences
- /?title=Update_Selected_Stock_Items...Update Selected Stock Items
- How To: Update the Value Proportion of Move With and Build Stock Items Globally
- Sales Returns - Detail Tab
- Profit Dialog
- Sales Summary - Monthly Sales Report
Deferred Cost of Sales
If you use Deferred Cost of Sales, the following articles may be useful:
- How To: Generate and Analyse the Deferred Cost of Sales Report
- Accounts Defer Cost of Sales
- Staged Processing Grid
- How To: Post a Deferred Cost of Sales
- Basic Deferred Cost of Sale Example
- Pitfalls of Not Setting Stock Values Correctly and How to Correct Them Going Forward