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    Location
    • 07 Sep 2023
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    Contents

    Location

    • Updated on 07 Sep 2023
    • 3 Minutes to read
    • Contributors
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    Article summary

    Finance → Location → Valuation → Value

    In this function, a revaluation of inventory can be performed as of a specific date at current/new purchase prices or for devaluation with a percentage rate. This function is used in conjunction with revaluation of open inventory for financial statements or when incorrect purchase prices have been booked for inbound deliveries or supplier invoices, and crediting is not possible.

    During revaluation, a journal is created with rows where you can review or modify the results before posting.

    In the first image, you'll find a list of journals that have not yet been posted. This list should be empty after posting.

    To perform a revaluation, the revaluation account must exist in accounting transactions.
    Check that accounting settings are configured with "Accounting Group, Who" = Blank and "Accounting Group, What" = All different iterations used on your items.

    In these accounting settings, the account for inventory revaluation must be specified. If the account field in that column is blank, an account needs to be added.

    Workflow

    By selecting the 'Create' command, you enter the filtering mode.

    image.png

    Location: Mandatory. Select the location for which inventory should be revalued.

    If no further selections are made, a journal with all inventory as of today's date and time will be selected.

    Date To: Set the date if revaluation needs to occur as of a different date.

    Update COGS (Cost of Goods Sold)

    If revaluation should also include and update sales on earlier dates, revaluation should be done with the 'Date To' set to when the new value should have started. For example, if incorrect purchase prices for inbound deliveries were made 2 days ago and you want all sales that have occurred to have the correct value, then revaluation should have the date set to the earlier date.

    Description: Provide a description of the revaluation for easier identification in the history. If not provided, BeX will generate one.

    Change in percent: If it's a percentage increase or decrease in inventory value, fill in the percentage.

    Filters
    To select specific items for revaluation, filters can be applied. For example, if only one product group should be revalued, select that product group. Only items with that product group will be included in the file.

    Filters can also be applied to purchase order or inbound delivery numbers if a specific delivery should be revalued. The date of the last inbound delivery ensures that only deliveries before that date are included.

    Revalue Inbound Deliveries with New COGS

    To revalue an inbound delivery and include sales made, the 'Date To' should be set as of the date of the inbound delivery. Otherwise, only the remaining value from the inbound delivery will be included, and no correction will be applied to previously sold items with the new COGS.

    Revaluation Journal
    Inside the journal, the results of the filtering are displayed as rows per variant and currency. The rows show item number, item variant, currency code, currency rate, remaining quantity, total value in currency and LCY, unit value in currency and LCY, new unit value in currency and LCY, and the adjustment that will occur during posting.
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    Update Values
    To update values, you can either perform a percentage revaluation, retrieve purchase prices, or manually enter adjustments on the row.

    Change in percent: If you didn't fill in the percentage when creating the file, you can do so now. If a percentage was entered, it will be displayed.

    Fetch purchase prices: Can be done for all rows under 'Actions.' All items with a new effective purchase price for the currency with a balance will be updated.
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    You can also retrieve the purchase price per row by clicking on the 'Dollar sign' symbol. This can be used if only specific rows need to be updated.
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    Manual adjustments can be filled in the 'New value per unit' field.

    The entire journal can be exported to Excel for an overview.

    The total value and total adjustment per row/total adjustment per row LCY are shown summarized.

    Post or Delete
    When ready, the journal can be posted under 'Actions' → 'Post.'

    Individual rows can be deleted using the trash can icon next to the row, and the entire revaluation can be deleted under 'Actions' → 'Delete.'

    image.png

    All rows with adjustments will now have an updated inventory value, and when sold, the new value will be used. If a previous date is used, previous sales will also have the new COGS applied.

    The journal can be found under Finance → Location → Valuation → History → Value.
    Accounting transactions for the revaluation have been created.

    All rows included in the journal (if filtering couldn't reduce the selection) but not adjusted will not be affected by the revaluation.

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