The following video walks through three different scenarios where inventory would need to be revalued and how to handle them within Orchestrated:
A printable PDF version is attached to this article.
Once in a while, you need to revalue what your inventory actually costs. Example of this could be that you enter the wrong price in the A/R Invoice or that the price is no longer reflective of the actual value.
Select this revaluation type to change the value associated with this item in the associated Inventory Account by a specific dollar amount.
This option gives you more direct control over the posting and will be preferred in most cases.
You can use this method to most accurately adjust the unit value of an item as of a specific date. To do this, you would calculate the difference between the unit cost on the specified date and the unit cost it should have been. Then you'd multiple this difference by the number of units that were in stock on the specified date, as shown on the Inventory Audit Report. The 'Quantity' on the form should be '1'.
Accounting: The value entered in the Debit/Credit column will post to the Inventory Account assigned to the item. This account is not explicitly shown on the revaluation form. You'll use a negative sign in this column if you want to decrease the value of the inventory. The accounts that default into the: 'G/L Increase Acct' and 'G/L Decrease Acct' fields will be used to offset the posting to the Inventory Account.
- You can always right-click and select 'Journal Entry Preview' to see the accounting effects of an Inventory Revaluation before posting.
Please note that if you choose to revalue inventory as of a past date, and the item involved has been involved in any transactions since that date, you will also need to process a second Inventory Revaluation to correct the value of the inventory as of the current (System Date).
- Select this option to change the CURRENT cost of the item. The current cost of the item will be adjusted regardless of the specified posting date.
- Accounting: The Inventory Account associated with the item will be adjusted approximately by the difference between the 'Current Cost' and the 'New Cost' multiplied by the CURRENT 'In-Stock' quantity.
- The accounts that default into the 'G/L Increase Acct' and 'G/L Decrease Acct' are used to offset the posting to the Inventory account, which isn't shown on the form.
- If the 'New Cost' > 'Current Cost' then the Inventory Account will be debited
- If the 'New Cost' < ' Current Cost' then the Inventory Account will be credited
- Go to Inventory->Inventory Transactions->Inventory Revaluation in your Modules tab
- Select the Revaluation Type you want (See notes below)
- Find your item in the Item No. column
- Fill out, or review, the data the in the required columns
- Click Add when you are done
You can go into your Item Master Data, go to your Inventory Tab and your inventory should now reflect the changes made.