Hi
I have been using ERPNext for some time and today of all days I am doubting my
interpretation of “Valuation Rate” in Item master.
The pricing-rate in “Valuation Rate” is as per the default UOM ?
Valuation Rate = 20.00 ; Default UOM = Each, then each item costs 20.00
Valuation Rate =2.00 ; Default UOM = gram ; Then each gram = 2.00 and each roll that contains 1000g = 2000.00
“Valuation Rate” is the price used to value each item in your inventory. It’s based on the default unit of measurement (UOM) you’ve set for that item. For example, if the Valuation Rate is 20.00 and the default UOM is “Each,” this means that each item costs 20.00. The system uses this rate to calculate the value of your stock.
Please explore Item Valuation Setup and Transactions and also explore the FIFO and Moving Average calculation difference