Primary Valuation

Updated May 6, 2024

Applies to : Sheet Stock, Roll Stock, Inks, Standard Items and Finished Good Items

All Inventoried Material and Finished Good Items need to be valued based on their current On Hand level multiplied by a per unit value determined by their individual Costing Method.

 

There are 4 different Primary Valuation methods. Each method allows the user to assign how their respective On Hand Record will be calculated and may use different per unit values to calculate their Inventory value.

 

Caution: The user should stick with a method for each Item and not attempt to toggle between methods for that Item. However, each Item may have a different Primary Valuation method assigned to it.

 

Standard Cost Valuation

Using Standard Cost, the system will update the value of all the inventory to the latest received cost (for a specific item) when material purchased through the Purchasing Module is received.

 

LIFO Valuation (Last In First Out)

Using LIFO, the cost for each lot of stock will be tracked and data collection will use a Last-In-First-Out policy.

 

FIFO Valuation (First In First Out)

Using FIFO, the cost for each lot of stock will be tracked and data collection will use a First-In-First-Out policy.

 

Average Cost Valuation

Using Average Cost, the system will determine the average cost of all the inventory. When material is purchased and received via the Purchasing Module, that material will be averaged with the existing inventory to create an updated average cost.