ERPNext Stock
What is Inventory Valuation in ERPNext?
- Inventory Valuation in ERPNext
- Inventory Valuation in ERPNext determines the monetary value of stock on hand using FIFO or Moving Average methods.
Why Inventory Valuation Matters
Accurate inventory valuation directly impacts gross profit, balance sheet assets, and tax liability. ERPNext automates valuation with each stock movement.
Methods Supported
ERPNext supports FIFO (First In First Out) and Moving Average. The method is set globally in Stock Settings and affects all valuation reports and Cost of Goods Sold calculations.
Revaluation
If landed costs (freight, customs) change the effective cost, use the Landed Cost Voucher to adjust valuation without creating manual journal entries.
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Related Terms
Valuation Method
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Landed Cost Voucher
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