You can restrict the selection by the main vendor of an item. The main vendor is specified in the item master record. You can valuate all the items from one or more main vendors.

Determine which storage locations will be considered in the report. Make the selection by location, or by warehouse, in which case you define range of included or excluded warehouses.

Indicate whether or not you want inventory transfers for items to be displayed in the valuation. Depending on which warehouse you select, both inventory placements and withdrawals are displayed in the list.

Enter the final date for the calculation.

You can valuate the warehouse inventories for one or more projects. Enter the project(s) if relevant.

Choose one of the calculation methods below.

Moving Average

SAP Business One valuates your 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 overvalued. This gain is not as high as under the FIFO method.

FIFO

Under this valuation method, SAP Business One assumes that the items that entered the warehouse first will also exit first. This means goods issues are valuated with the prices that are valid for the first goods receipts. For example, if you purchase an item at three different prices on three different occasions, SAP Business One assumes that the first items you sell are from the first delivery. This means the prices from the first purchase order are used for the sale and calculation of the corresponding gross profit, until the quantity from the first purchase document is gone. At this point, SAP Business One uses the price for the items from the second purchase order. Assuming prices will increase over time, the items in stock will be valuated using the higher prices from the later purchase documents.

By Price List

You can use one of the price lists defined in SAP Business One to valuate the warehouse inventories. When you choose this method, the Price Source field appears. In the dropdown list, select a price list. SAP Business One then uses the prices defined for the items in the price list you have selected.

Last Evaluated Price

You can also perform the valuation based on the last evaluated prices. In this case, SAP Business One uses the last calculated costs for each item. If you run a valuation under the FIFO method, for example, and then run a valuation for the last calculated costs, SAP Business One valuates the items using the last value that was determined for an item under the FIFO method.

If you selected the By Price List option, choose the price list for the report calculation.

Choose one of the following display formats for the report:

If you valuate transactions in a foreign currency, select one of the following:

Select the checkbox to allow negative inventory during valuation. Items may have negative inventories. From the accounting perspective, no procedure is available for valuating negative inventories.

If you allow negative inventories, the following situations are possible:

To avoid negative inventories on the reporting date, post a goods receipt for an A/P invoice on or just before the reporting date.

Displays the valuation in a foreign currency.

By default the field is deselected and the results are displayed in local currency.

If you select Additional FC for Total, an additional field is displayed in which you must select the required currency. You can then switch between the local currency and the selected foreign currency on the top left of the report results window.

If you specify an additional currency, it is displayed the next time you open the report.