A valuation method is assigned to products of the product types goods and material via the product groups. This can be organised differently at the top level for all goods or for individual product groups.

Valuation methods are used to map costs correctly so that income and sales can always be set in the desired relation. We can currently calculate three different valuation methods:

The valuation method can no longer be changed after the initial creation of a product!

Through the goods movements from the order, goods receipt and invoicing, we generate the stock price for each individual product in the background, which always ensures that the correct costs are calculated for all products in the stock price field.

Newly created products receive the purchase price from the supplier price table, that of the standard supplier or that of the first valid other supplier as the stock price until the first stock movement. This is done in order to maintain a basis for calculating sales prices on products, offers and orders, regardless of whether the product has already been purchased.

Stock prices in products that are made up of a bill of materials are totalled.

Stock prices of products are also displayed in quotations and orders and can therefore represent a calculation of cumulative stock price to sales price. This makes it possible to make a statement about the revenue of an individual order and quotation at the line level of individual products. This requires proper data maintenance.

Overall, inventory prices can be read out via data sources for use in reporting. Typical reports here would be Revenue per product, per sales order over time; inventory price to sales prices over time; quantities product sales to cost of goods sold.

Stock accounts and stock change accounts can be set via the product groups for each product group or for all products; these have a direct effect on the products assigned to the product group. Here we expect the stock accounts and stock change accounts provided for in your chart of accounts. This entry is mandatory, as we do not post any stock and stock price, i.e. no stock movement, without a stock account.

Stock movements differ according to the context of the posting (goods, material, production); a posting is always made in the procurement journal. These are summarised in the posting run (see Posting runs) for financial accounting and can be edited again at this point if necessary.

Stocks are always posted to the set stock account and stock change account. Changes to the assigned accounts only take effect when the goods receipt is posted, according to the logic that we cannot debit values from an account where no stocks are shown. It is therefore possible to change the stock account and stock accounts quickly and easily, but this will only take effect with the next positive goods receipt posting.

Shrinkage/loss accounts: is not an automatic posting, all stock movements are always only stock changes, a qualification as shrinkage is a manual intervention in the posting.