What methods are available for tracking and maintaining inventory valuation?
Currently there are two available inventory valuation methods:
Average - Under average costing, each addition to inventory is averaged into the inventory value on a weighted unit basis.
Standard - Standard costing allows a company to set a predetermined cost for producing a good (under normal conditions) that will be used as a target or basis of comparison for all transactions related to the product
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In addition, there is an Inventory Valuation Report that will provide the total valuations of inventory in accordance with the valuation method used per item. This report can be run with a variety of parameters, including a specific Organizational Unit, Item, Item Class, or Inventory Location, and it may be run for any date - past or present.
The report provides a summarized view of information based on the inventory valuation method, the historic value of Item Cost, and the total Item Balances at the report date.
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