This guide describes how you can manage inventory settings in Netvisor. Inventory settings affect, among other things, the recording of changes in inventory value, batch processing, and the management of inventory events.
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You can access inventory settings as follows: Products > Inventory > Inventory settings.
Inventory settings options
- Default voucher type for inventory recording
Recording changes in inventory value uses the voucher type according to inventory settings. You can manage the default voucher type used here. By default, this is VA Inventory value change. - Default batch processing for new products
This setting affects which batch processing is created for the product when a new product is created. If necessary, batch processing can still be changed from the product card. The following guide provides more information about batch processing: Batch processing per product. - Update purchase price on invoice line also for non-inventoried composite products
The purchase price is updated from inventory events to the invoice line if it is an inventoried product or if the product is a non-inventoried composite product and it only has inventoried products as sub-products. Without selection, the update is only done if it is an inventoried product. - Automatically link inventory events when creating a new sales order
Automatically links inventory events to the purchase when creating a new sales order. Without selection, inventory events are not automatically linked when creating a new sales order, but the linking occurs when the order is set as delivered/invoiced. This can be used in situations where the order may never materialize. - Set inventory events as processed upon delivery of the sales order
Sets inventory events as processed upon delivery of the sales order, meaning marking orders as delivered reduces inventory. If the selection is not made, inventory events are marked as processed upon invoicing.
Example cases
In this case, an event that reduces inventory balance (e.g., sales) is linked to an event that increases inventory (e.g., purchase) when creating a new sales order, and products are reduced from inventory upon delivery of the sales order.
In this case, the links occur upon delivery of the sales order, meaning at the same time as products are reduced from inventory.
In this case, the links occur immediately upon creating a new sales order. Products are reduced from inventory upon invoicing.
If no option is enabled, the linking and reduction from inventory occur upon invoicing.
- Automatically link only to processed purchase type events
The automation can be limited to only process processed inventory events, so links are not formed to open events in any situation. The product of the inventory event must have automatic batch processing (e.g., FIFO) set. - Automatically link unlinked events to purchase type event when it is created or modified
The linking tool can still manually link to open events (e.g., undelivered purchase order). For the purchase order, the event automatically links to a possible sales event only when the purchase order is delivered. If the link is desired before this, it must be done manually. - Use purchase order product line comment on inventory event
Allows the automatic use of the line comment used on the purchase order line on the corresponding inventory event line. - Do not use average price in calculating purchase prices for composite products
The average price is not used at any stage when calculating the price for the main product from inventoried sub-products, but the price defined behind the product is used.
Inventory valuation method
This section shows which inventory valuation method is selected in the company.
Running average price calculation
- Running average is an inventory valuation method obtained by summing the latest and previous purchase together, after which the total value of purchases is divided with the total number of products.
- Costs are formed computationally based on the running average of units.
- This unit price is updated for all products in inventory as the unit price, and this calculation is repeated whenever a new purchase batch arrives in inventory.
Weighted average price calculation
- Weighted average is an inventory valuation method in Netvisor obtained by summing the inventory together for the entire purchase history, after which this number is divided with the number of purchases for the entire inventory history.
- Costs are formed computationally based on the weighted average of units.
- We recommend using FIFO calculation or Running average price calculation instead.
FIFO calculation
- The costs of units purchased first are allocated to the units sold last.
- The method assumes that the materials and supplies that arrived first in inventory are used first.
- Based on the business income tax law, which strongly affects business accounting, the inventory value must be calculated according to the FIFO method.
- Default inventory event types for processing basket
The selected type is set as default when the respective function is performed in the processing basket (product listing). If necessary, new inventory event types can be created through Products > Inventory event types.
Keywords: Inventory settings, batch processing, inventory events, valuation method, FIFO, average price calculation
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