Inventory Valuation
Standard-cost valuation by item type (Raw, WIP, FG) and warehouse, reconciled to GL inventory accounts.
Inventory
Warehouses, locations, lots and serials, every stock movement, cycle counting and valuation that reconciles to the ledger.
- CP-0442 · CNT-2041 Cycle1 EA
- CNT-3310 Cycle2 EA
- CNT-5107 Physical0.8 KG
- CNT-5140 Physical6 EA
Warehouses and locations
Warehouses can be plants, stores, quarantine, consignment at a customer or stock at a supplier. Inside a warehouse, locations are bins, racks or line-side. Each item has a default put-away location and can be restricted to certain zones, for hazardous or temperature-controlled material.
Product.ItemTypeRawComponenton hand
| Product | Warehouse | Lot Number | Quantity On Hand | Quantity Allocated |
|---|---|---|---|---|
| PRD-4352 | WRH-150 | L26-6012 | 80 | 0 |
| PRD-7765 | WRH-150 | L26-0081 | 490 | 20 |
| PRD-8043 | WRH-140 | L26-1089 | 630 | 160 |
| PRD-8431 | WRH-110 | L26-1413 | 670 | 280 |
| PRD-9388 | WRH-110 | L26-0501 | 860 | 520 |
| PRD-5966 | WRH-130 | L26-5262 | 50 | 30 |
Lots and serials
Lot control tracks a quantity received together: supplier lot, receipt date, expiry, certificate. Serial control tracks each unit. Both flow through issue, production and shipment, which is what makes a recall or a warranty claim answerable: which lots went into this serial, and where else did that lot go.
FinishedGoodon hand
| Product | Warehouse | Lot Number | Quantity On Hand | Quantity Allocated |
|---|---|---|---|---|
| PRD-6087 | WRH-120 | L26-5272 | 740 | 130 |
| PRD-5774 | WRH-140 | L26-6534 | 810 | 150 |
| PRD-8249 | WRH-140 | L26-3314 | 40 | 10 |
| PRD-2026 | WRH-150 | L26-8561 | 610 | 300 |
| PRD-4163 | WRH-150 | L26-0495 | 580 | 310 |
| PRD-4059 | WRH-120 | L26-4383 | 190 | 10 |
Stock movements
Every change to stock is a movement with a type, and the type decides the accounting:
| Movement | Effect |
|---|---|
| Receipt | Supplier goods received; inventory up, goods-received-not-invoiced up |
| Issue to WIP | Components to a work order; raw down, work in progress up |
| Completion | Finished goods from a work order; WIP down, finished goods up |
| Scrap | Quantity written off with reason; expense posted |
| Transfer | Between locations or warehouses; no value change unless cost differs by site |
| Adjustment | Count variance or correction; requires approval above a threshold |
| Shipment | To customer against a sales order; finished goods down, cost of sales up |
Reservations and allocation
A sales order or work order reserves stock against its need date, so two orders cannot promise the same pallet. Allocation is hard (specific lot) or soft (quantity), set by item.
Cycle counting and physical inventory
Count plans pick items by ABC class and frequency. A count is entered against the book quantity, the variance is calculated, and above a value threshold an approval is required before the adjustment posts. Full physical inventory freezes movements for the counted locations and reconciles the same way.
Valuation
Inventory Valuation uses standard cost by item type and warehouse and is reconciled to the general-ledger inventory accounts every period. Average costing requires additional configuration and valuation rules beyond the current item schema. The review includes receipts awaiting invoices, stock adjustments and WIP so timing differences can be traced to their source.
Modules
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Product engineering
Items, bills of material, routings and engineering change, with revision control on all of it.
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Planning
Demand, master schedule, MRP and capacity: from what customers want to what the plant and suppliers must do, with every planned order traceable to its demand.
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Shop floor
Work orders, dispatch, operations, labour, material issue, scrap and completion, recorded where the work happens.
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Inventory
Warehouses, locations, lots and serials, every stock movement, cycle counting and valuation that reconciles to the ledger.
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Purchasing
Requisitions, sourcing, purchase orders, receiving, three-way match and supplier performance, with approval where money is committed.
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Quality
Inspection plans, incoming and in-process inspection, non-conformance, corrective action, holds and certificates, tied to the exact lot or order.
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Costing and finance
Standard costs, cost rollups, work-in-progress, variances and the journal entries that make every movement a posting.
Reports
All reportsRoles and permissions
Owns MRP, work-order release, scheduling, and BOM/Routing maintenance.
Runs the floor — assigns operators, posts production, handles holds.
Manages procurement of raw materials and components.
Performs inspections and dispositions non-conforming material.
Executes assigned production operations; separately assigned receiving and stock-handling permissions cover warehouse work.
Makes assigned purchasing and control decisions independently of the person who requested or prepared them.
Related processes
Plan to produce
From a demand line to finished goods in stock: MRP, release, dispatch, execution and completion, with the gates where a person decides.
6 stages · 2 approvals
Procure to pay
Requisition, approval, purchase order, receipt, inspection, three-way match and payment authorisation, with segregation of duties built in.
6 stages · 2 approvals
Order to cash
Quote, sales order, promise date, reservation, pick and ship, invoice and cash, connected to the plan so the date you promise is one the plant agreed to.
6 stages · 1 approval