Stock Value

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WARNING: Changing the Stock Value Calculation method either globally or individually against a stock item will not retrospectively update the Stock Value against an item. Only when you post the next Purchase Invoice will the system re-evaluate and update the Stock Value

What is Stock Value?

It is the value of the stock you hold, ie what a stock item is worth.

How do I keep my Stock Value up to date?

There are four methods of Stock Value calculation which can be set globally or individually against a stock item where required:

  • Average
This uses an average value.
  • Standard
This is a manually entered figure in the [ Stock | Detail | Properties ] tab, ie you set the value.
  • Last Price Paid
This uses the last price paid for an item when the purchase invoice containing the item is posted, ie whatever you last paid for an item is the new stock value.
  • Avg price inc build
When a stock item is built and the stock value updated for the item (build parent), this will be stored against the stock movement in the database. The average costing method has been changed to use the stock values stored against the stock movements for the item (build parent) whenever the item's stock value is updated. This will ensure that the stock value at the point of building an item is always incorporated into the overall stock value calculation.
Notes:
  • If builds are processed in the system and the stock value is set incorrectly this will impact the stock value calculation and force it out of line.
  • As with adjustment values, build values cannot be changed after they have been completed and posted to the accounts.
  • The above changes will also feed through to the Unbuild function, as well as the Build function.
  • Average pricing must be used in order to benefit from this change.
  • Only one functional Build or Move With relationship will be able to exist against a single Stock item.
  • This works the same as Average Price for items that are not builds.

How much is all my stock worth?

There are two main areas for reporting this:

  • The Stock Value Report
    • This takes the number of stock items you hold and multiplies them by how much they are currently worth.
  • The Stock Nominal
    • This is where the value of every stock item that has been bought is held. When an item is sold its value is taken from the Stock nominal account and journaled to the Stock - Cost of Sales nominal account.
    • The Stock nominal holds the stock value based on what stock items are billed for. It is updated when the purchase invoice containing the items is posted or if using Stock Received Not Invoiced (SRNI), it is when the goods are delivered based on the purchase order price.

Why are there differences between my Stock Nominal and Report?

There are many reasons why these may not agree; for more information read the Stock Value Differences page.

Setup Screens

Accounts

General

How Tos

Stock Item



Deferred Cost of Sales

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