Inventory Valuation

The Inventory valuation Report provides a detailed overview of the value of your current inventory.

To access the Inventory Valuation Report, select Warehouse from the top menu and click Valuation in the drop-down menu.

 

Calculation of the inventory value

The inventory value is calculated as: Value of inventory input - (minus) Value of inventory output = Inventory value

If a limited period is not set in the filters on the left of the screen, the inventory value for the end of the current month is displayed.

If you have activated the Actual Cost Prices expansion, both an expected inventory value and an actual inventory value are calculated.

  • Actual inventory value is based on the expenses and overhead budget items that have been transferred to your tracezilla account via transfer from your e-conomic account.
  • Expected inventory value provides an estimate of what your inventory value would have looked like, based on what you have registered in tracezilla and provided that all purchase documents from the company’s suppliers are posted

 

Inventory input

The value of the actual inventory input is calculated on the basis of:

  • expenses that are loaded into tracezilla from your accounting program. Only expenses associated with a lot are included in the inventory input. In addition to the price of the item, this will primarily be an expense such as shipping, which may be spread over several lots.
  • budget items on purchase-, production-, stock- and return orders marked as overhead.

The value of the expected inventory input is calculated on the basis of:

  • budget items on purchase-, production-, inventory- and return orders that you register yourself.

 

Inventory output

The value of the expected inventory output is calculated as follows:

  • The expected inventory cost price per unit x The number of units consumed = Value of expected inventory output

The value of the actual inventory output is calculated the same way using the actual cost price per unit.

 

Inventory Valuation report

The inventory valuation report provides a detailed overview of the value of your current inventory.

1. Click on Warehouse in the top menu. Select Valuation in the section Reports in the drop down menu.

2. In the filter above the table you can delimit your search. You can filter by Partner, SKUs and Tags. Click on the button Apply in order to activate the filter.

3. You can view the report in a printer-friendly format by clicking Printer-friendly. You can export the report to Excel by clicking XSLX.

In the following sections, you can read about the individual tabs in the report and how the columns in each tab are read.

 

The tab Summery, Movements

This column shows inventory input and inventory output in the delimited period of time, selected in the filter.

If no period of time has been selected, per default the report will show inventory input and inventory output for the end of the current month.

Only relevant columns will be displayed. If, in a given period of time, you have not made any inventory adjustments regarding fx. Analysis, this row will not be displayed in the report.

Column header Explanation
= Beginning This is the inventory valuation at the beginning of the selected period.

The value is calculated based on the amount of stock and the cost price of items in stock.
+ Purchase This is the value of the items entered into your inventory via purchase orders during the selected period.
+ Production This is the value of the items entered into your inventory via production orders during the selected period.
+ Return This is the value of the items entered into your inventory via return orders during the selected period.
= Inbound, Total This summarizes the value added to your inventory through purchase orders, production orders and return orders. This is the value of your total inventory input.
Lost / Discarded This is the value of the items that have been lost / discarded in the selected time period, e.g. items that have become too old or for some other reason must be discarded.
Stock-taking This is the unexplained loss of goods which is not detected before the date og the stock-taking.
Analysis This is the value of the items which are removed from stock for the purpose of analysis.
Product Development This is the value of the items which have been removed from stock for the purpose of product developement.
Events, webshop, retail… This is the value of the items which have been removed from stock for the purpose of sales in connection with events, web shop, retail etc. This could be samples.
Sales This is the consumption of goods as a result of items being sold.
Outbound, Total This summarizes the value removed from your inventory due to Loss, Stock-taking, Analysis, Product Development and Events/samples. This is the value of your total inventory output.
Totals (buttom black line) This is the total value of your inventory calculated as Primo month + Inbound (minus) Outbound.

 

By SKU (Approximately)

Column header Explanation
SKU Code This is the unique SKU number.
Global name This is the name of the SKU.
Unit of Measure This is the primary unit of measure as set up for the SKU.
In Transit from Supplier: Quantity This is the quantity of confirmed units in transit from the supplier.
In transit from supplier: Valuation This is the approximate valuation of confirmed units in transit from the supplier.
On Hand: Quantity This is the quantity of units on hand in your inventory.
On Hand; Valuation This is the approximate valuation of all lots of the SKU on hand in your inventory.
In Process/Being Moved: Quantity This is the quantity of units being moved on warehouse orders, or in process on production orders, which has not yet been received.
In Process/Being Moved: Valuation The approximate value of units disposed on confirmed production and warehouse orders, which has not yet been received.
In Transit to customer: Quantity This is the quantity of units in transit to customers. Data will only be shown when deliveries has the status In transit.
In Transit to Customer: Valuation This is the approximate value of goods in transit to customers.
Totals: Quantity This is the quantity total of units contributing to the inventory value of the specific SKU.
Totals: Valuation This is the approximate value of all units of the specific SKU.
Totals: Per unit This is the unit value average.

 

By Lot (Approximately)

Column header Explanation
SKU Code The unique reference code of the SKU.
Global name The global name of the SKU, regardless of the selected language.
Lot: Lot Number The unique lot number of the specific lot.
Lot: Warehouse This is the warehouse location of the lot.
Lot: Phase This shows in which phase the lot is at the moment. Such as On hand, In transit to customer, In transit to supplier, etc.
Lot: Unit of Measure This is the primary Unit of Measure, as entered in the SKU setup.
Totals: Quantity This is the total quantity of units included in the valuation of the specific lot.
Totals: Valuation This is the approximate value of the specific lot.
Totals: Per unit This is the approximate value of the lot shoen per unit.

 

Accrual

This tab displays the inventory value divided into the different stages a lot may be in: On the way from the supplier, in stock, sold, lost / discarded.

This overview shows the numbers for the end of the current month if a period is not selected. You can see a description of accruals later in this guide.

Please note: The value displayed on this tab is either the Expected Value or the Actual.

Use the filter on the left side named Show Cost Prices to choose to view either Expected or Actual. NB! Actual Cost Prices is an extension that can be turned on for the subscription Trade or Production.

Column header Explanation
Inbound – Month This is the inventory value pr month. All months displayed in the overview are the months in between the selected Begining of month and the Cutoff month.

For example, if you select Beginning of month 2020-01 and Cutoff month 2020-05, the values of January, February, March, April and may will be displayed.
Inbound – In transit from supplier This tab shows the value of lots you have already purchased but have not yet received in stock.

For example, if you have selected Beginning of month October and Cutoff month October, the value of the lots on purchase orders with pick-up date in October and availability date in November will be displayed here.

 
Inbound – On stock This tab shows the value of the lots that have arrived on stock via purchase orders or production orders in the selceted period between the initial month and the Cutoff month.

The value displayed here for produced goods is the surplus value e.g. shipping costs, production or labor costs.

The value of the raw material used is not displayed because this value has already been registered when the raw material arrived in stock.
Inbound – Total This column summarizes the values from the columns In transit from supplier and In stock.
Outbound – Sold This is the value (cost price) of the lots that have been pulled from stock via a sales order within the selected period.
Outbound – Lost / discarded This is the value of the lots registered as lost or discarded in a stock adjustment. This value also includes unexplained loss of goods registered in connection with a stock count.
Outbound – Misc. This is the value of the lots that are pulled from stock for other reasons, e.g. Product development or analysis.

The value in the Miscellaneous column covers other stock adjustments in addition to adjustments due to losses or disposal and stock counts.
Onbound – Total This column summarizes the values from the columns Sold, Lost / Discarded or Stock-taking or Misc.
Totals – Movements of the period This calculates the total for the period’s movements based on [Incoming: Total] – [Outgoing: Total]
Totals – Beginning This is the total inventory value at the beginning of the selected period.
Totals – End of period This is the total inventory value at the end of the selected period.

 

The tab Inbound

This tab shows inbound movements into the warehouse and thus an added value to the inventory.

The Movement Type filter is only relevant for this tab and for the Outbound tab. Using this filter, you can narrow your view to show only one particular order or stock adjustment.

Column header Explanation
Lot – Lot number This is the number of the lot that has been added to your stock, thereby adding value to your warehouse. The cost price is linked to the lot.
Lot – YM (Year, Month) This is the year and the month the lot has arrived in stock.

Eg. 202011 means year: 2020 and month: November.
Order – Type This is the type of order with which the lot has arrived in stock.
Order – Partner This is the partner specified in the order header of the incoming order.
Order – Number This is the order number of the incoming order
Order – Delivery date This is the delivery date specified in the order header of the incoming order
Units – Unit of Measure (UoM) This is the unit of measure of the SKU
Unit – Quantity This is the amount of units of measure added to your warehouse.Eg. if the unit of measure is psc and the quantity is 250, that means 250 pieces have been added to your warehouse
Expected, change in value – Each This is the expected cost price per. Unit of measure - e.g. Pr. Kg - which has altered the inventory value as a result of the incoming lots during the selected period.
Expected, change in value – Total This is the total expected cost price that has altered the inventory value as a result of the incoming lots in the selected period of time.
Actual, change in value – Each This is the actual cost price per. Unit of measure - e.g. Pr. Kg - which has changed the inventory value as a result of the incoming lots during the selected period.
Actual, change in value – Total This is the total actual cost price that has altered the inventory value as a result of the incoming lots in the selected period of time.

 

The tab Outbound

This tab shows outbound movements from the stock and thus removed value from the inventory.

When a raw material is consumed in production, the value is transferred to the finished product being produced. The value is thus only deducted from the inventory when the finished product leaves the warehouse via a sales order or a stock adjustment.

The Movement Type filter is only relevant for this tab and for the Inbound tab. Using this filter, you can narrow your view to show only one particular order or stock adjustment.

Column header Explanation
Lot – Lot number This is the number of the lot that leaves the warehouse and thereby pulls value out of the inventory. The cost price is linked to the lot.
Lot – YM (Year, Month) This is the year and the month the lot was pulled from stock

Eg. 202011 means year: 2020 and month: November.
Order – Type This is the type of order or stock adjustment with which the lot was pulled from stock.
Order – Partner This is the partner specified in the order header of the outgoing order.
Order – Number This is the order number of the outgoing order
Order – Delivery date This is the delivery date specified in the order header of the outgoing order or the date on which the stock adjustment took place.
Units – Unit of Measure (UoM) This is the unit of measure of the SKU
Unit – Quantity This is the amount of units of measure pulled from your warehouse.Eg. if the unit of measure is psc and the quantity is 250, that means 250 pieces have been pulled from your warehouse
Expected, change in value – Each This is the expected cost price per unit of measure - e.g. per Kg - which has altered the stock value as a result of the outgoing lots during the selected period
Expected, change in value – Total This is the total expected cost price that has altered the inventory value as a result of the outgoing lots in the selected period of time.
Actual, change in value – Each This is the actual cost price pr. unit of measure - e.g. pr.. kg - which has altered the inventory value as a result of the outgoing lots in the selected period.
Actual, change in value – Total This is the total actual cost price that has altered the inventory value as a result of the outgoing lots in the selected period of time.

 

Transferring Inventory valuation adjustments to e-conomic

When transferring your GL Journals (Generel Ledger journals) to your accounting software, it is possible to include stock adjustments.

In order to tranfer the stock adjustments, select the initial month in the field Include inventory valuation adjustments from the beginning of. NB.: No postings will be made in the period before the selected initial month!

During the transfer, tracezilla controls the stock movements for each of the individual months from the selected prime month. Deviations will be offset so that the stock movements in the individual months match the current figures in e-conomic. These posts will be offset against the balance sheet account of the inventory.

When all of the selected months have been offset according to the existing stock movements, the system will check the final balance on your inventory account in e-conomic.

If the final inventory balance in e-conomic deviates from the inventory value in tracezilla, an adjustment post dated the 1st of the selected Beginning Month is created.

In case part of the deviation is due to stock movements outside of the current financial year or in case the deviations come from periods prior to the use of tracezilla, these deviations will be balanced on the account for accruals in e-conomic.

You can ask tracezilla to recalculate the inventory value before you transfer a GL Journal including inventory valuation adjustment to e-conomic. The recalculation may take a few minutes.

During the recalculation, the button will turn grey and the circle of the two arrows will rurn. After the recalculation, the arrows stop turning and the date of the recalculation is displayed above the button.

 

Outline