Inventory Valuation for Year-End Closing
This scope item provides users with an example of a process description that they can use as a template for their own valuation processes. Inventory valuation is performed in accordance with local legislation (such as the German Commercial Code), including settings for the overhead structure, valuation variant, and stock valuation with devaluation based on movement rate.
Key Process Steps Covered
- Perform stock valuation for raw materials and trading goods
- Determine lowest value for raw materials and trading goods based on market prices
- Determine lowest value for raw materials and trading goods based on range of coverage
- Determine lowest value for raw materials and trading goods based on movement rates
- Perform FIFO valuation
- Analyze stock valuation for materials using price comparison for each material stock account, material type, or material
- Adjust stock value by posting manually to the relevant stock adjustment account
Benefits
- Determine stock valuation for raw materials and trading goods based on the lowest value principle
- Determine inventory valuation for semi-finished and finished products based on local requirements for valuation
- Adjust stock value