Any document or could someone please help to explain me about this `Repost Item Valuation`

Thanks

Tree EM

Any document or could someone please help to explain me about this `Repost Item Valuation`

Thanks

Tree EM

Hi @treeem,

`Repost Item Valuation`

is a feature that allows you to recalculate and update the value of inventory items in the system. It involves selecting the items, specifying a valuation method, choosing a date range, and triggering the reposting process. Then recalculates the valuation based on the selected method and transactions within the specified date range. The updated valuation is then applied to the selected items for accurate financial reporting and inventory management purposes.

I hope this helps.

Thank You!

1 Like

Hi @treeem,

Hmm

Okay!

You run a business that sells t-shirts. You purchased a batch of t-shirts at $10 each and recorded this cost. However, due to a change in the market or other factors, the current value of those t-shirts has increased to $15 each.

Now, when you generate financial reports or analyze your inventory, you want the valuation to reflect the current value of the t-shirts rather than the original cost. This is where reposting item valuation comes in.

Using the `Repost Item Valuation`

feature, you can recalculate the value of the t-shirts based on the current market value. During the reposting process, consider the new market value and any relevant transactions within the specified date range.

As a result, the system updates the valuation of the t-shirts to $15 each, reflecting their current worth. This updated valuation helps you accurately assess your inventory value, make informed pricing decisions, and have more accurate financial reporting.

I hope this helps.

Thank You!

1 Like

Sorry to jump-in. Does Repost item valuation works for crossed-warehouses ?

hey @NCP

Is the valuation rate = cost fo the product for erpnext calculations?

Like if the t shirt is bought at 10$, 10$ is the valuation rate. If you sell the T shirt as 15$, then it will be 5$ profit, and 15$ will show as selling rate, and 10$ valuation rate is used by erpnext as cost of good solds?

I am not sure if I understood well this concept. Thank you

Hi @l4cky,

As per my understanding,

The valuation rate represents the cost at which an item is recorded in the system. However, the valuation rate and selling price are separate and distinct concepts.

Suppose you bought a t-shirt at a cost of $10, and you recorded this cost as the valuation rate. The valuation rate of $10 represents the cost at which the t-shirt is accounted for in your inventory.

Now, if you sell the t-shirt for $15, Then will record the selling price as $15, and it will calculate the profit as the difference between the selling price and the valuation rate. In this case, the profit would be $5 ($15 - $10).

The valuation rate of $10 is used for the cost of goods sold (COGS) calculation. When you sell the t-shirt, It will deduct the valuation rate from the selling price to determine the COGS. In this case, the COGS would be $10.

I hope this helps.

Thank You!

Hmm ,

Perhaps, Yes @SubhajitDey,

It takes into account the relevant transactions, including transfers between warehouses, when recalculating the valuation of inventory items. This ensures that the updated valuation reflects the current worth of the items, regardless of their location within the organization. The feature allows for accurate financial reporting and inventory management, even in scenarios involving multiple warehouses.

Thanks!

“The valuation rate of $10 is used for the cost of goods sold (COGS) calculation. When you sell the t-shirt, It will deduct the valuation rate from the selling price to determine the COGS. In this case, the COGS would be $10.”

Wouldn’t it be the COGS = valuation rate?

Selling price = Revenu = 15$

Profit = 5$

COGS = 10$ (the price we purchase the item)

Valuation rate = 10$

In this case, valuation rate = COGS, is it always the case? I wonder if both of the 2 words are synomyms. Thanks @NCP