The price of a Articlecalculated according to a certain valuation method, e.g. the moving average price.
Valuation price
The valuation price is relevant for inventory valuation in SAP Business One and depends on the selected valuation method.
Assessment procedure:
- Standard price: The item is always valued at the standard price defined. Deviations from the purchase price are posted to a variance account.
- Moving average price: The price is calculated according to the moving average of purchases and is adjusted with each new booking.
- FIFO (First In - First Out): Items that were put away first are removed first. SAP Business One memorises the price of each purchase.
Evaluation level:
- The valuation can be based on Article level or Storage level take place.
- Whether the valuation is carried out at warehouse level is determined under Administration > System initialisation > Company details > Basic initialisation defined.
Important notes:
- The valuation method must be carefully defined, as it is usually only used for Zero stock can be changed.
- Before the go-live, it must be checked whether each article has the correct Valuation method is assigned.
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