Stock valuation

Who this is for: Storekeeper, Manager, Owner, Accountant, Read-only — the screen requires inventory.valuation.read. Where: Inventory → Valuation

The valuation report is what the property is holding and what it is worth, one row per store × item. It is the report every other screen in this section feeds, and the only one that answers "how much money is sitting in the store rooms".

Stock is valued at weighted-average cost. That is the costing method, and it is the only one — there is no FIFO, no LIFO and no standard cost to configure.

How the unit cost is worked out#

Each store × item carries two running totals: how much is on hand, and what it is worth. The unit cost on the report is the second divided by the first, computed when you open the page.

Event	On hand	Value	Unit cost
Receive 10 bags at US$30.00	10,000 g	US$300.00	US$0.03/g
Issue 360 g to the kitchen	9,640 g	US$289.20	US$0.03/g
Receive 10 more at US$50.00	19,640 g	US$789.20	US$0.04/g

Taking stock out never moves the average — it removes quantity and value in the same proportion. Only receiving at a new price, and posting a count that finds a difference, change what a unit is worth.

The cost is never stored as a rate, so there is no revaluation step and nothing to run at period end. Every figure here is derived from the two totals at the moment you ask.

Read the report#

The card at the top carries three things:

• Stock value — the total of every row below.
• Movement ledger — the same money worked out a completely different way: the sum of every stock movement this property has ever recorded, receipts positive, issues and shortfalls negative.
• A badge — Reconciled when the two agree, Out of balance when they do not.

Underneath, one row per store × item, with the quantity on hand in base units, the unit cost, and the value.

Everything the property is holding, in base units. The two totals on the card were worked out from different places and agree, which is what the badge is saying.

Ghi chú

Unit cost is displayed to the nearest currency unit; Value is exact. For an item measured in grams or millilitres the displayed rate is coarse — US$0.03 a gram is a rounded rendering of a running total, not the number the arithmetic uses. Read Value when the money matters.

Rows only exist where there is stock. An item with nothing on hand is not listed — including one whose stock has gone to zero — so this report says what you are holding, not what you buy. The catalog is the list of everything.

What "Reconciled" is actually claiming#

The two totals come from different places. Stock value is a running figure kept per store × item and updated in place; the movement ledger is an append-only history that nothing edits. Every receipt, issue and count adjustment writes both, in the same transaction, so the two can only disagree if something has gone wrong beneath the product.

Reconciled therefore means: the stock levels can be re-derived from history. It is an integrity check, not a business one.

Ghi chú

Reconciled says nothing about whether the shelf agrees with the screen. That question is a stock count. A store can be perfectly reconciled and still be missing half its coffee — the books just have to be internally consistent about the coffee they think is there.

If the badge ever reads Out of balance, nothing on this screen will fix it: it is a fault to report, not a discrepancy to post.

Valuation and the accounting ledger#

They are related and they are not the same number, so read them for different questions.

	Valuation report	Accounting → Ledger
Answers	What is on the shelf, at what cost	What the property has spent and owes
Moves when	Goods are received, issued or counted	An invoice is matched, stock is consumed, a count is posted
Currency of record	Stock movements	Double-entry journal

Receiving goods builds stock value here without posting a journal entry; the accounting entry for a purchase happens when the invoice is matched and the bill it raises is approved. Going the other way, issuing stock and posting a count variance book 5100 Cost of Goods Sold against 1300 Inventory.

What the report does not offer#

• No date. It is on-hand now; there is no as-at selector and no history of last month's closing value. Take a copy when you need one.
• No export, no filter, no total per store. Rows are ordered by store, then item, and that is the whole report.
• No cost breakdown per row. To see how a unit cost got where it is, follow the events: receiving for what came in, consumption for what went out, stock counts for what was corrected.

What's next#

• Stock counts — the answer to "does the shelf agree with this"
• Receive goods — the only step that adds value at a price
• Inventory overview — where the costing rule sits in the whole chain