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Function documentationInventory Revaluation Locate this document in the navigation structure

 

If your company runs a perpetual inventory system, you may need to perform inventory revaluation. Valuation is based on the calculation methods Moving Average, Standard, FIFO, Standard, or FIFO.

You can revaluate inventory values by:

  • Changing the price for a specific item

    The inventory price is changed and inventory value is recalculated according to the new price.

  • Changing the value of a specific quantity of inventory

    The quantity of inventory remains unchanged, resulting in a change in the price.

    When inventory is subject to FIFO control and there are items in the FIFO layer, an inventory debit or credit results in a posting to the inventory account. If the FIFO layer is empty, the posting goes to the price difference account.

Note Note

You cannot perform inventory revaluation if any item involved is with a negative inventory value.

End of the note.