Incorrect Valuation Rate in Asset Capitalization with Backdated Posting (v14)

ERPNext
1

In ERPNext (based on Frappe Framework), there appears to be an issue with stock valuation when using Asset Capitalization with backdated transactions.

Scenario:

  1. An item is received into a warehouse with an initial valuation rate.

  2. After a few months, the same item is received again into the same warehouse with a different (new) rate.

  3. Then, an Asset Capitalization document is created with a posting date between the two receipts (i.e., backdated relative to the second receipt).

Expected Behavior:

  • The system should correctly recalculate valuation rates based on the posting date.

  • If necessary, Repost Item Valuation should be triggered automatically.

  • When creating new stock-related documents, the correct historical valuation rate should be fetched.

Actual Behavior:

  • Valuation rates are not updated correctly after Asset Capitalization.

  • The system fetches an incorrect valuation rate when creating new documents from the warehouse.

  • It seems that Repost Item Valuation is not triggered or not applied properly.

Version:

  • Observed in ERPNext v14

Questions:

  1. Is this a known issue in v14?

  2. Has this behavior been fixed or improved in ERPNext v16?

  3. Are there any changes in how Asset Capitalization interacts with stock valuation or reposting in newer versions?

2

@raha

The asset capitalization doctype books correctly valuation based on warehouse, batch or serial number for stock items.

The problem may have been lying with that stock item valuation posting due to following reasons;

  1. item posting can be incorrect due to various reasons and can be verified by running Incorrect Stock Value Report.
  2. Stock Reposting can be run if you find your item in aforesaid report.
  3. Negative stock volume will always result in chaos for valuation purposes anywhere likewise asset capitalization.
  4. Incase item is batch controlled, batch wise valuation is tabulated dynamically in ERPNext.
1 Like
3

Hi @raha,

In v14, Asset Capitalization backdated entries often fail to trigger the Repost Item Valuation (RIV) automatically, causing incorrect rates in subsequent documents.

Key Updates:

  • v14 Issue: This is a known limitation where the stock-to-asset transition doesn’t always flag the necessary downstream recalculations.

  • v16 Improvements: The reposting engine is much more robust in newer versions, with better queueing for any transaction affecting warehouse balance-after-value.

  • Solution: For your current version, manually create a Repost Item Valuation entry for that Item/Warehouse starting from the backdated date to force a sync.

Hope this helps!

1 Like