IC Revalue Stock on Hand

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You can Revalue Stock on Hand many times during a period. Stock on Hand revaluation occurs automatically when an IC End Of Period is performed, or on demand when this option is selected. The IC Balances will be updated and a GL Batch will be created if integration to GL is available.

Stock on Hand value is calculated for diminishing products (those you hold stock for) as:

• Closing Stock Quantity Current Period * Valuation Cost (from Product at time of revaluation) = Closing Stock Value Current Period

Revaluation is calculated as:

• Closing Stock Value - Opening Stock Value - Movement Value (from transactions) = Revaluation

Any changes to Closing Stock Value due to revaluations will not reflect in the balances until Stock on Hand is revalued.

We recommend you revalue stock on hand before reporting IC Balances for the current period.

Before reporting IC Balances for the Current Period, Revalue Stock on Hand

If the Integrate to GL option in IC Settings - Integration tab is set to Summarised or Detailed, Revaluation will create a GL batch. This transfers the change in Stock on Hand due to revaluations since the previous revaluation, between the Stock on Hand in the balance sheet, and the Closing Stock in the trading account. The GL Accounts are specified for each Stock Group.

What causes revaluations?

Revaluations for Stock on Hand cover any changes to stock value which are not included in the Movement value for the period (that is, sum of cost of transactions for diminishing stock items). There is not a specific event that triggers creating revaluations, it is a calculation per Product and Location (in Accredo Saturn). The following will all give rise to revaluations:

• Valuing on Latest cost.
• Editing Cost Prices, including edits that happen automatically when updating from AP Shipment invoices.
• Rounding where Prices are stored to more decimal places than Amounts.
• Posting transactions into a prior or future Period at a different cost from the cost at End Of Period for that period.

What about negative stock?

If you have selected Allow Negative Stock in IC Settings - General tab, tab then you may have negative In Stock quantities when stock is valued. Negative quantities are valued in the same way as positive quantities and reduce total stock value.

When stock is revalued how does it reflect the changing value due to shifts in exchange rates?

All of IC – other than Selling Prices and Supplier Cost prices – is handled in base currency. Revaluation does not alter the cost at which stock is being valued, it simply ensures stock is valued at the cost specified.

Exchange rates on receipts (AP Shipments) are used for calculating the base currency cost which will be applied to the IC Receipt transaction and flow into their Latest Cost and Average cost calculation.

Manufacture transactions which also flow into the Latest Cost and Average cost calculation all occur in base currency at the sum of the valuation costs on the components.

To change the valuation of your Inventory the valuation costs would need to change. Valuation cost is the cost price selected as your Valuation Basis in IC Settings.

To update Cost Prices, recalculate Supplier Cost prices in base currency, and update sell prices to reflect changes in exchange rates, you can use the options under Update Prices to do this in bulk. Each can be done for a range of Products, a selected Supplier or a Stock Group.

Changing cost prices will result in a revaluation in the current period when you select Revalue Stock on Hand.