The determination of how the inventory value should be calculated, e.g. moving average price, FIFO ("first in, first out"), or LIFO ("last in, first out").
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Definition: Valuation methods in SAP Business One determine how the value of the stock is calculated. The method is selected during the System initialisation.
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Available methods:
- Standard price: The value of the stock is based on a fixed standard price, which is adjusted by revaluation.
- Moving average price: The inventory value is calculated on an ongoing basis using the average purchase price.
- FIFO (First In - First Out): The oldest stocks are considered sold or consumed first.
- Evaluation by serial/batch number: The stock is valued individually depending on the assigned serial or batch number.
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Continuous vs. non-continuous inventory management:
- Continuous inventory management: Every stock movement leads directly to inventory-relevant financial postings in the general ledger.
- Non-continuous inventory management: Stock transactions do not directly affect the general ledger and the stock value is not revalued with each movement.
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Setting the valuation method:
- the Standard valuation method is published under Administration > Company details > Basic initialisation defined.
- The method can be used depending on item group be different.
- The valuation can be based on Item level or warehouse level take place.
- The in the item group defined method serves as Default value for newly created or imported items.
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Change in the valuation method:
- A change is only possible if the Inventory at zero lies.
- Several items can be selected via the Inventory valuation method be adjusted at the same time.
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Important:
- The right Evaluation method should be used before the first of an article must be carefully selected.
- After the first use or Integration into a Parts list a change is often no longer possible.
- Before the Go Live should be checked to ensure that all items have the correct valuation method.
- One Consultation with the tax consultant is recommended.
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Stock revaluation:
- SAP Business One enables a Revaluation of articles with the available valuation methods.
- A revaluation according to FIFO is not possible.
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Reports:
- Inventory valuation report: Simulation of the stock valuation.
- Stock report: Shows the current stock level including valuation
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