When I make a new stock entry and add Material for my target, it does not take the buying price of that code automatically? Do I have add it on my own ?
The system sets the rate based on valuation rate of the item, related to the selected warehouse. Is there any existing stock transactions against the item and warehouse?
What is Valuation Rate in definition of ERPNext?
I was of the idea that “Standard Buying” will be the default valuation for opening stock orders or building inventory when you start working with ERP. Is that so?
What do you mean by “Is there any existing stock transactions against the item and warehouse?”
Looking forward to your reply.
The valuation rate is calculated based on specific valuation method mentioned in Item master or Stock Settings, it can be FIFO or Moving Average.
Please check this blog to know more about it.
Inventory Valuation Method - FIFO vs. Moving Average
For opening stock entries, you have to enter valuation rate manually, or you can mention default valuation rate in Item master as well.
I was just asking “Is the current entry is the first one or not (opening entry)”, you have mentioned it as opening entry, so no confusion now.
Thank you @nabinhait for clearing this out.
I have another doubt. If I am making a material of 10 units transfer from Warehouse A to B and say by the end of the month I receive 7 back with value addition to it.
1)How should I put entry for going and receiving against the same STE- XXXX (Stock Entry Series)?
2) How the loss of 3 units get accounted in the software?