Inventory Accounting

Inventory valuation and Lagerwert PLUS in the finance context.

Inventory valuation in merchandise management can also be used without integration into financial accounting. It is integrated into financial accounting with the help of posting groups.

Inventory posting groups

The inventory posting group links items in connection with the addressed location to general ledger accounts of inventory assets and production accounts. The structure of the inventory posting groups must be aligned with the structure of the balance sheet accounts in the area of inventory assets in order to control them correctly through the items.

Meta process STV - Inventory valuation

Inventory valuation includes the identification of the costs assigned to an inventory item, their transfer into financial accounting, and the revaluation of inventory.

STV-0010 Evaluate inventory

Value entries that have not yet been adjusted are processed and, depending on the item valuation method, the difference between the value already posted and the new value is written as an adjustment entry.

STV-0020 Transfer inventory valuation to financial accounting

General ledger entries are created on the basis of the value entries. The general ledger entries can be created for the individual value entries or for each combination of posting date, location code, inventory posting group, business posting group, product posting group, and dimension.

STV-0030 Calculate and post write-down

The current inventory value is determined per location, item, and variant. According to the company’s internal logic, the write-down of the items is calculated, for example by season or storage duration. The difference is posted on the general ledger account level. No transfer into merchandise management takes place. If this is desired, an item revaluation journal would have to be filled.

Supplemental module Lagerwert PLUS - CKL

The module is used to determine current assets during the annual inventory count. Lagerwert PLUS works with the item movements in Microsoft Dynamics 365 Business Central. The period for valuing the assets can be defined per week, per month, per quarter, or per year. The valuation rules are assigned to the movements according to one of the following inventory valuation methods.

  • According to age structure
  • According to item range
  • According to issue method
  • According to lot expiration date
  • According to locations
  • According to lower of cost or market
  • According to lower of cost or market in foreign currencies

These do not affect the unit cost. The valuation carried out most recently can be displayed in the item master. The necessary reconciliation, a detailed proof of the valuation criteria, and the resulting values are ensured for the auditing bodies.

If required, only the print reports in the standard Microsoft Dynamics 365 Business Central system and from OPplus are used.