Cost Revaluation
Landed cost. After goods are received, freight, duty or clearing bills arrive. Pick the receipts, list the costs with the account each is booked against, choose how to spread them, and Save adds them to the value of the stock received.
What it is for
It makes stock carry what it really cost. Each cost line is shared over the receipt lines picked, and each receipt line's value goes up by its share: debit the receipt line's inventory account, credit the account named on the cost line. The subcontracting receipt also uses this screen by itself to add its components' cost to the finished item.
The one rule people get wrong: a cost revaluation cannot be dated before the receipts it revalues.
Every field in plain words
Header
| Field | What it means | What to put |
|---|---|---|
| Transaction | The number | |
| Posting Date | The revaluation date | Not before any receipt picked |
| Transaction Journal | The journal | |
| Journal, Journal Indicator, Financial Year, Financial Period | From the journal and date | Read only |
| Notes | Free text |
Costs
| Field | What it means | What to put |
|---|---|---|
| Account | The account the cost is credited to | Required. Usually a clearing account the freight bill is posted against |
| Cost Element | What kind of cost | |
| Allocation Base | How it is spread | Required: equally, by quantity, by principal value, by landed cost, by original value, by weight or by volume |
| Allocation Value | The amount | Required |
| Line Text | Free text |
Receipts revalued
| Field | What it means |
|---|---|
| Transaction No | The receipt line picked. Required |
| Transaction Date, Purchase No, Name, Movement Unit, Movement Quantity | From the receipt |
| Principal Value, Landed Cost, Original Value | The receipt line's values |
| Additional Landed Cost, Recalulated Value | Its share and its new value |
| Allocation | Opens the share of each cost line |
What it is connected to
- Item Receipt for Purchase Order - the receipts revalued; subcontracting receipts create cost revaluations.
- Inventory Closing - takes the new values into the period's average.
If something looks wrong
- "Revaluation Lines - Line ID: ... - Posting Date ... cannot be less than Transaction Date ..."
- "Principal Total Value is 0", "Landed Cost Total is 0", "Landed Cost is 0 for Item: ... - Line ID: ...", "Original Value Total is 0" - the chosen base has nothing to spread over.