This instruction describes how you can reset the stock value completely in terms of both quantities and value using an inventory entry. This instruction is also suitable for correcting the stock value if the value of a product is incorrect.

CONTENTS

If it is necessary to reset the stock value completely in terms of both quantities and value and then update the new corrected stock value, you must first reset the stock value with one inventory entry and then mark the correct balances of the products with another inventory entry. This same instruction can also be used to correct the stock value if it is incorrect for some product. First, inventory the product to zero, check that the value is zero, and then re-inventory it with the correct quantity and purchase price.

Resetting stock and changing stock value

You can open the help related to making an inventory by selecting Inventory. The help contains more detailed descriptions of how to make an inventory.

NOTE! Before making a new inventory, ensure that the products have the correct purchase price.

Carry out resetting stock and changing stock value in the following order:

  1. Inventory the stock to zero through the process basket.
  2. Check if there are products in stock whose balance is zero but that still have value. If such products are found, run the stock value to zero with the stock value correction report, if necessary.

    Proceed as follows: select Products > Stock reports > Stock value correction report. More information about reports can be found in the Stock management reports help.

    • Stock value correction report: The report shows, based on the search criteria, products whose stock quantity is zero but whose stock value deviates from zero. Through the extended search, you can change the day when the correction transaction is recorded for the selected day. On the page, you can select the desired products and automatically create a stock value correction transaction for them. The function creates a new stock transaction row that zeroes the deviation in stock value. A correction transaction is formed in stock transactions, the sum of which is the opposite of the separating sum. The action does not affect the average price.

Note! The stock value correction report uses the option "recorded for the transaction" as the purchase price. If you use the correction report, you can no longer use any other purchase price in stock management reports than "recorded for the transaction" for the respective product.

  1. Inventory the products again with the correct values and balances so that the correct average price is formed for the product.

This transaction corrects the stock value for the day on which the actions are performed. The action does not affect retroactively, and old transactions retain previously recorded values. Open sales and purchase transactions are not affected by the inventory entry; instead, the stock decreases or increases according to the delivery date of the sales transaction or purchase order.

Inventorying through the process basket cannot be done retroactively, and previous sales transactions cannot be linked to this inventory entry.

Changing average stock price in FIFO processing / running average price

The average stock price is calculated from the average purchase price of existing stock transactions. If you want to reset this and obtain a correct new desired value, proceed as follows.

  1. First, inventory the product to zero according to the above instructions for each possible stock and set the purchase price to zero in the inventory. This does not yet reset the purchase price.
  2. Make a new inventory entry with the correct desired average price in the desired stock. This updates the product's average price to this new purchase price.

The same logic also works if the stock valuation method is running average price. If the stock valuation method is weighted average price calculation, then the change in average price is not possible, because the value does not reset when the quantity drops to zero and the price is viewed for the entire purchase history. In this case, it is practically not possible to set the desired new average price for the product. In this case, we recommend changing the background stock valuation method, for example, to running average price calculation. 


Frequently asked questions

Question: How do I reset the stock value in terms of both quantities and value with an inventory entry?
Answer: First inventory the stock to zero through the process basket and check with the stock value correction report that products with a zero balance have no value. After this, inventory the products again with the correct values and balances.

Question: What should I do if a product has a zero balance but still has stock value left?
Answer: Open Products > Stock reports > Stock value correction report and use the report to create a stock value correction transaction that zeroes the deviation in stock value.

Question: Does an inventory entry affect previous stock transactions retroactively?
Answer: No, it does not. The stock value is corrected only for the day on which the inventory entries are made, and old transactions retain previously recorded values.

Question: Can I change the average stock price if FIFO or running average price is used?
Answer: Yes. First inventory the product to zero with the purchase price set to zero and then make a new inventory entry with the desired average price. The product's average price is then updated to the new purchase price.

Question: Why can I not change the average price if the stock valuation method is weighted average price?
Answer: In weighted average price, the value is viewed based on the entire purchase history, and the value does not reset even if the quantity drops to zero. For this reason, the desired new average price cannot be set for the product, and it is recommended to change the valuation method, for example, to running average price calculation.

Keywords: Stock management, inventory entry, stock value correction, average price, FIFO, correction report

This article has been translated using an AI-based translation tool. The contents or wording of these instructions may differ from those in other instructions or in the software.


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