SAP Business One evaluates inventories with the moving average price on an ongoing basis. This means a valuation takes place based on the corresponding quantities and prices for each goods receipt and issue, and the moving average price is updated accordingly.

The valuation price is calculated as the quantity multiplied by the average price. Assuming prices will increase over time, the items in stock will be overvalue. This gain is not as high as under the FIFO method, but greater than under the LIFO method.

Items Object