The extended valuation report (Extended Inventory Valuation Simulation Report) is an optional report variant in SAP Business One that allows companies to simulate fictitious revaluations of inventory levels without the need to simulate the current valuation. Stock valuation or journal entries in the general ledger.
The report is activated in the General settings under the Inventory tab in the Reporting sub-tab via a tick box and then executed as a separate report. It serves as a management tool for „what-if“ scenarios in the stock valuation. It also adds additional simulation options to the classic valuation report.
In particular, the stock value can be simulated using all available valuation methods: moving average price, FIFO and standard costs. The Based on Item Definition calculation method can also be selected. In this case, the system values each item on the basis of the individual valuation method stored in the respective item master. In contrast, the classic valuation report displayed an error if the simulated valuation method was identical to the method defined in the item master.
The extended valuation report is not intended to determine the actual Account balances intended; for this the Inventory audit report be used. However, if the selection criteria are identical, the results of the extended valuation report can match those of the portfolio valuation report. The report also supports the requirements of international accounting standards, as inflation-based revaluations can be specifically filtered out of the report if they are not to be included in the portfolio valuation.
The results of the simulation do not change the current stock value. Instead, the system writes the simulated stock values to the price list Last determined price. Consequently, this last determined price can later be used as the price source for calculating the gross profit in sales documents. Thus, the report is relevant for companies with perpetual inventory management as well as for companies without perpetual inventory management if they want to estimate the inventory value and prepare valuation-related decisions.
Demarcation:
In contrast to the classic valuation report, the extended valuation report offers extended simulation options and supports the Based on Item Definition calculation method without generating an error message for identical valuation methods in the item master. It also differs from the stock check report, as it is used exclusively for simulation and not for determining the actual account balance.
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