System Values - Stock - Valuation

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WARNING: Changing these settings may cause unforeseen issues. If in doubt please check with KCSL's Support Team before making changes.

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

This screen is where you define how you would like your default Stock Value to be calculated, however, it can also be configured against individual stock items in their [ Stock | Detail | Accounting ] screen.

System Values - Stock - Valuation

  • Stock Value Calculation Method: this section allows you to set the default methods used when calculating stock value which influences the margin and profitability of goods sold when reported on in the system. It is very important that you consider the method you wish to use. The following are available:
    • Last Price Paid: calculates the stock value based on the last buy price paid in the latest POSTED purchase invoice.
    • Average Price (default): Calculates the stock value based on the average buy price on POSTED purchase invoices. For more information go to Average Price.
    • Standard Price: uses the stock value price entered manually by the user.
      Note: the system will NEVER change this 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:
      1. When this option is used then every time a child item is used to create a build, this will be shown in the PI button as an adjustment out.
      2. When this option is used, every time an item is built this can be seen in the PI button as adjustments in.
      3. 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.
      4. As with adjustment values, build values cannot be changed after they have been completed and posted to the accounts.
      5. The above option affects both the Unbuild and Build function.
      6. Only one functional Build or Move With relationship will be able to exist against a single Stock item.
      7. Only one functional Build or Move With relationship will be able to exist against a single Stock item.
      8. Non-Stock Controlled items will use Last Price Paid method when the system is set to Average Costing. This is because an appropriate stock level to apply the calculations to cannot be determined, so this method is used instead. The calculations can be seen by using the PI button next to the Stock Value field in the stock item.
      9. Usually this option is used for items that are exclusively used for builds.
  • Include Adjustments in Average Price Calculations (default=ticked):
    • a tri-state checkbox, set to the "on" setting.: the system will include any manually entered System Value figures added in the [ Stock | Adjustments ] screen along with any any prices on posted purchase invoices.
    • a tri-state checkbox, set to the "off" setting: adjustments will not impact the Stock Value calculation.
  • BtnSetStockValCurrBuyPrice.jpg  : resets the Stock Value for all items (current and discontinued) in the stock table to equal their Buy Price.
  • BtnSetStockValPIButtonVal.jpg  : resets the Stock Value for all items (current and discontinued) in the stock table to equal the average Purchase Invoice price. When calculating the average PI price, any stock adjustment values are ignored. It is advisable to do a Copy Live to Test before you action this in your live system.
  • BtnCheckStockValAgainstPIButtonVal.jpg  : resets the Stock Value for all items (current and discontinued) in the stock table to equal the average Purchase Invoice price. When calculating the average PI price, any stock adjustment values are ignored. It is advisable to do a Copy Live to Test before you action this in your live system. The report is saved in the same location as the Khaos Control exe as detailed in the message informing the user that the report has been generated.
    Notes:
    1. For more information about setting up your stock value and why it is important see Pitfalls of not setting stock values correctly and how to correct them going forward.
    2. For specific stock items where an alternative stock value calculation method is required please refer to Stock Item Value Calculation Method.
    3. Non Stock Controlled items will use Last Price Paid method when the system is set to Average Costing as an appropriate stock level to apply the calculations to cannot be determined so this method is used instead.

  Be aware that the previous three options take a long time, so care needs to be taken when using them.

Note: new systems are normally supplied with (default) values shown.

See Also

Visit KhaosWikiX at https://support.khaoscontrol.com/wiki_kcx/ to see the following:

Contact the Khaos Team