Stock Valuation Reports

Stock Valuation Reports

Stock valuation reports show the financial value of your inventory using different valuation methods, helping you understand inventory investment and prepare financial statements. This guide explains how to use stock valuation reports in EquiBillBook.

What are Stock Valuation Reports?

Stock valuation reports show:

• Total inventory value
• Stock value by item, category, or location
• Valuation using different methods (FIFO, LIFO, Average Cost)
• Cost of goods sold calculations
• Inventory investment analysis
• Value trends over time

Why Stock Valuation Reports are Important

Stock valuation reports help you:

• Understand inventory investment
• Prepare financial statements
• Calculate cost of goods sold
• Analyze inventory costs
• Make pricing decisions
• Plan inventory budgets
• Comply with accounting standards

Accessing Stock Valuation Reports

To view stock valuation reports:

1. Navigate to Reports → Inventory Reports
2. Select Stock Valuation or Inventory Valuation Summary
3. Alternatively, go to Items → Stock Reports → Stock Valuation

Stock Valuation Methods

EquiBillBook supports different valuation methods:

• FIFO (First In, First Out):
  • Assumes oldest stock is sold first
  • Uses oldest purchase cost
  • Common in most businesses
• LIFO (Last In, First Out):
  • Assumes newest stock is sold first
  • Uses most recent purchase cost
  • Used in specific industries
• Average Cost:
  • Uses weighted average cost
  • Calculates average of all purchases
  • Simplifies cost tracking

Valuation method is configured in inventory settings.

Stock Valuation Report Information

The report typically displays:

• Item Code: Item identifier
• Item Name: Product name
• Category: Item category
• Current Stock: Available quantity
• Unit: Unit of measurement
• Valuation Method: FIFO, LIFO, or Average Cost
• Cost Price: Purchase cost per unit
• Total Cost: Total inventory cost
• Stock Value: Total inventory value
• Average Cost: Weighted average cost
• Location: Branch or location
• Last Purchase Rate: Most recent purchase cost

Filtering Stock Valuation Reports

You can filter reports by:

• Date: Valuation as of specific date
• Valuation Method: Compare different methods
• Item Category: Filter by categories
• Location/Branch: View valuation by location
• Item Group: Filter by brands or groups
• Stock Value Range: Filter by value range
• Item Type: Filter by product type

Total Inventory Value

The report shows total inventory value:

• Sum of all item values
• Value by category
• Value by location
• Percentage breakdown
• Comparison with previous periods

Stock Valuation by Category

Analyze valuation by category:

• Total value per category
• Percentage of total inventory
• Average cost per category
• Category-wise investment
• Identify high-value categories

Stock Valuation by Location

For multi-location businesses:

• View valuation for each location
• Compare values across locations
• View consolidated valuation
• Identify locations with high inventory investment
• Balance inventory across locations

Cost of Goods Sold (COGS)

Stock valuation affects COGS:

• Valuation method impacts COGS calculation
• FIFO typically shows higher ending inventory
• LIFO typically shows lower ending inventory
• Average cost provides middle ground
• COGS = Opening Stock + Purchases - Closing Stock

Comparing Valuation Methods

Compare different methods:

• View valuation using FIFO
• View valuation using LIFO
• View valuation using Average Cost
• Compare impact on financial statements
• Choose method appropriate for your business

Stock Valuation Trends

Monitor valuation over time:

• Compare valuation across periods
• Identify trends in inventory value
• Track value changes
• Analyze impact of purchases
• Monitor cost inflation effects

Exporting Stock Valuation Reports

You can export reports:

• Export to Excel for detailed analysis
• Export to PDF for financial reporting
• Share with accountants or auditors
• Use for financial statement preparation
• Archive for historical records

Using Valuation Reports for Decision Making

Based on valuation analysis, you can:

• Financial Planning: Understand inventory investment
• Pricing Decisions: Set prices based on costs
• Budget Planning: Plan inventory budgets
• Cost Analysis: Analyze cost trends
• Profitability: Calculate gross margins
• Tax Planning: Understand tax implications

Valuation for Financial Statements

Use valuation reports for:

• Balance sheet preparation
• Profit & loss statement
• Inventory asset valuation
• Financial reporting compliance
• Audit documentation

Stock Valuation vs Stock Summary

Stock valuation focuses on:

• Financial value of inventory
• Cost calculations
• Valuation methods
• Financial reporting

Stock summary focuses on:

• Quantities and levels
• Stock status
• Availability
• Operational metrics

Best Practices

• Review stock valuation reports monthly
• Compare valuation across different methods
• Ensure consistent valuation method
• Verify cost prices are accurate
• Reconcile valuation with accounting records
• Use for financial statement preparation
• Document valuation method used
• Review with accountant or auditor

Multi-Currency Valuation

If using multiple currencies:

• View valuation in base currency
• Convert values for reporting
• Account for currency fluctuations
• Ensure proper exchange rates

Valuation Adjustments

Handle valuation adjustments:

• Record cost price changes
• Update average costs
• Handle price corrections
• Account for write-downs
• Document valuation changes

Need Help?

If you have issues with stock valuation reports:

• Ensure stock tracking is enabled
• Verify cost prices are recorded correctly
• Check that valuation method is configured
• Ensure proper date is selected
• Verify location/branch filters
• Contact support if values seem incorrect

Stock valuation reports are essential for financial reporting and inventory management. Understanding inventory value helps make informed business decisions and ensures accurate financial statements.