Stock Re-Valuation Function

ERPNext Stock/Inventory
1

Hello Everyone,

It have read somewhere that stock re-valuation function was introduced in v14 or v15, though I am not able to find it anywhere.

Is there anyway to update the valuation of the stock without removing it and entering it all again with new valuation ?

Either in V14 or V15.

Thanks.

2

You have a couple of options:

  • Use a Stock Reconciliation and change the value. This can be back dated if needed and will recompute all the transactions referenced by that item. If you are adjusting down for some kind of LCM strategy, use this approach. Adjusting the value of your goods above cost is fraud, at least in the US, unless you want to capitalize some other expenses.
  • If you are capitalizing some other kind of cost you can use ERPNext’s excellent Landed Cost Voucher. You can think of this as “addition to basis”.
  • You can change the valuation in a Stock Entry but it may require changing warehouses, so not recommended, but it’s another place where adjustments in value can occur. All of the caveats about upward adjustment apply here too.

If you want to get into a fascinating discussion about the accounting requirements and business cases for revaluing your inventory or assets at market values without selling them, just ask.

1 Like
3

Thanks for the reply.

  • I am not sure how I can change the value using Stock Reconciliation.
    Is it Material Issue and then Material Receipt with new valuation rate?
  • Landed cost voucher is not an option cause the inventory is very old almost 3 year or above.
  • What do you mean by this ?

I can do Material Issue and Material Receipt but I am expecting it to affect Stock ageing this way.

4

You should be able to change the valuation rate in the row detail of a Stock Reconciliation, but it may not be in the grid view.

Is it Material Issue and then Material Receipt with new valuation rate ?

That will work. This is an exceptional sort of problem and shouldn’t be considered a best practice, which I think you understand. It might be the right approach since the inventory is so old. As you noted, this will change the aging of the inventory. I was talking about using a SE type of Material Transfer with different warehouses.

1 Like