Stock valuation
In Arabic تقييم المخزون
The money value of the stock a business holds at a point in time, worked out from quantities on hand and the costing method.
In plain words
Stock is usually one of a distributor’s largest assets. Its value is the quantity of each item on hand multiplied by its cost under the costing method in use, added up across items and warehouses.
The figure feeds the balance sheet and, through the change between two dates, the cost of goods sold. So the valuation report and the inventory account in the ledger should show the same number.
The common mistake is valuing today’s stock when the accounts need the value at month end. Goods keep moving after the cut-off, so the figure has to be rebuilt as at that day.
- Item A, 120 pcs × SAR 8.50
- SAR 1,020
- Item B, 40 pcs × SAR 22.00
- SAR 880
- Item C, 300 pcs × SAR 1.25
- SAR 375
- Stock value
- SAR 2,275
In Axon Suite
How Axon Suite handles it
Axon Suite rebuilds stock on hand as it stood at any day’s close from the movements themselves, and month-end reconciliation sets the inventory account in the ledger against the stock valuation.
Feature
Stock on hand at any day’s close
Pick a date and Axon Suite rebuilds stock on hand as it stood at that day’s close, from the movements themselves. Narrow it by warehouse, category or item, and open the stock card to see every movement behind the figure.
Open: Stock on hand at any day’s close