There are three filters within Stock Valuation by COGS: Real, Estimated, Both.
▪Select Real as the filter:
–The Stock Valuation by COGS report reflects the exact COGS (cost of goods sold) of the stock currently on hand, based on FIFO (first-in first-out). If there are 2 units on hand that were purchased on different purchase orders at different prices, the total COGS is a combination of those two different COGS.
–The Stock Valuation by Cost report reflects the exact cost of the stock currently on hand, based on FIFO. If there are 2 units on hand that were purchased on different purchase orders at different prices, the total cost is a combination of those two different purchase prices.
▪If Estimated is selected as the filter, the report will only include stock from purchase orders on Received where the cost/COGS is estimated because the purchase orders have not been finalised.
▪If Both is selected as the filter, the report will include all stock on hand from purchase orders on Finish as well as those on Received.
▪The Estimated filter in this report has nothing to do with the Estimated field on the Vendors tab of stock records.
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Be aware that:
▪The Estimated field on the Vendors tab on stock records is not a dynamic field and has to be manually updated.
▪The Cost and COGS fields are automatically updated when purchase orders and linked expense orders are finished. |
As far as stock valuation reports are concerned:
▪Stock Valuation by COGS includes any freight component on purchase orders and any linked expenses. This report should always match the general ledger.
▪The Stock Valuation by Cost ignores any freight on purchase orders or other linked expenses and most likely will not match the general ledger.
Purchasing warranty stock at zero impacts the stock valuation. If there are 10 units on hand and nine of them were brought in at zero, the stock valuation will be at that lowered cost, ie. price of 1 ÷ 10 provides a lower unit cost.
If warranty stock is ordered for specific warranty jobs and the purchase order is linked to the job, the warranty stock will be supplied against the correct job, and the profit reporting on jobs will be accurate.
If supplying stock from the company's inventory for warranty jobs, buying replacement warranty stock at zero means the job profit reporting may be skewed as a result of this. The overall P&L result will be accurate, but the job profit reporting may not be at a job level.
Stock Valuation by GL Account will produce a spreadsheet detailing stock on hand sales general ledger figures.
Stock Valuation by GL Group will produce a report of all stock values based on GL Groups.
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