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Entering a Stock Revaluation Record - Example

In order to be able to revalue an Item that you hold in stock, you should first carry out the following configuration work:
  1. Specify a Stock Revaluation Variance Account on the 'Variances' card in the Account Usage Stock setting.

    When you reduce the value of an Item in a Stock Revaluation, this Variance Account will be debited with the value of the reduction. If you increase the value of an Item in a Stock Revaluation, the Variance Account will be credited with the value of the increase.

  2. If you hold stock in more than one Location (or you hold stock of Serial Numbered Items), you may want to be able to assign different values to Items in different Locations (or different values to Items with different Serial Numbers). On the other hand, you may need to ensure that every Item is revalued with the same value. If you need the latter option, select the Force same Cost for same Item option in the Stock Revaluation Settings setting:

  3. If you would like the Cost Price of an Item to be updated from Revaluations, select one of the Upd. Cost Price at Stock Revaluation options on the 'Costs' card of each Item record:

    If you would like one of the Upd. Cost Price at Stock Revaluation options to be selected by default in new Item records, you can specify this in the Item Settings setting in the Sales Ledger:

  4. If you need Stock Revaluations to update the stock valuation in the Nominal Ledger, select the Stock Revaluations option on the 'Logistics' card in the Sub Systems setting:

Having carried out the configuration work as described above, you can now revalue an Item. Follow these steps:
  1. In this example, we will revalue our stock of Item 10134. The Item History and Stock List reports show that we have 33 x 10134 in stock in three Locations, valued at 25.00 each:

  2. To begin the revaluation process, create a new record in the Stock Revaluation register and enter Item 10134 in the first row:

  3. When you move the insertion point to the next field, the quantity that you currently hold in stock will be placed in the Qty field. In this example, as we are holding stock in different Locations, a separate row for each Location will be added to the matrix automatically.

    The Location will be shown on flip C:

  4. If you know the new value per unit of the Item, you can enter it in the New Cost field on flip A immediately. But if you need to use the existing value per unit as a guide, save the Stock Revaluation. The existing value per unit will be brought in to the Old Cost field:

  5. In this examp