The value of the total quantity of a company's own material currently held in stock under a specific material number.
Example inventory value for:
- one plant
- one company code
- an evaluation type
- A storage location
Inventory value
The inventory value indicates the current stock value of a company and is an important key figure for the company's success.
Inventory management methods:
- Continuous: Sales, purchasing and production transactions generate direct financial postings and the inventory value is continuously revalued.
- Non-continuous: No direct financial postings. The inventory value is only adjusted at the end of the period through inventory change postings.
Valuation methods:
- FIFOmoving average, standard price (with continuous inventory management).
- Stock revaluations are not possible for FIFO items.
Reports and analyses:
- Stock report: Shows the current stock level and its valuation.
- Inventory posting list: Outputs quantity movements with prices.
- Simulation report: Enables the fictitious valuation of stock levels for scenario analyses.
Standard cost management:
- Standard costs for semi-finished and finished products can be managed in the article master.
Important notes:
- The choice of Valuation method should be well thought out, as it can rarely be adjusted later.
- Negative stocks should be avoided.
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