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Topic: Stock Valuation
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| By: Guest | Posted on: Dec 7 2020 at 02:42:22 AM | I understand that there will be no stock valuation based on average cost.
Is there a way to output any purchase price history for each component, so that we can generate our own average cost reports, to value our stock correctly?
Thanks | |
| By: Jason | Posted on: Dec 11 2020 at 05:33:52 AM | I still maintain that "Cost" and "Valuation" are actually two entirely different things.
Somebody who buys and sells something like memory chips might have paid $1000 for his current stock. But the price falls and the chips are now only worth $750. He can stand there saying they're worth $1000 but he'd never sell them for that. When the accountant asks for the stock valuation at the end of year he really does want the valuation. Not the cost. The stock is only worth $750 so the $250 difference must be written off against profits as a loss. (Unless you have a boss or shareholders to impress in which case you'd use the cost price to ignore the fact that your stock is now worth $250 less than you paid)
The current value of my stock is not what I paid last month. It's nearer the last price I paid for it.
Having said that I would also like it if minimrp could add another report to give us the cost based on historic purchasing using FIFO. Not because I would use it as a value. But to answer the question - where did the money go.
It would also be interesting to see both reports "Actual Cost" vs "Valuation Based on most recent price". | |
| By: Guest | Posted on: Dec 11 2020 at 07:25:21 AM | I agree. Any report that gives real information about the actual cost paid.
My point was simply that have one standard cost is not really enough. The cost price would be great to update automatically on each purchase (if you want to), but the average cost or last cost using FIFO, tells you the value of the stock.
But a we can't have any report if the information is not there, so if we had the avergae cost, you could implement it however your business works best. | |
| By: Rod | Posted on: Jan 9 2021 at 03:14:07 PM | | Jason, I totally agree with the guest that posted this queston. It has been a issue for me since I purchased MRP back in 2016. I also agree with you reasoning on the tax comment. What I don't agree with is having the ability to view inventory at average cost and aging or occasional special purchase average cost when reviewing my inventory. There are times you have to pay a premium or special from an alternate supplier for the same component. We need to know the overall average cost for that component. More users would use this feature than you realize if it was available. | |
| By: Simon Q | Posted on: Jan 29 2021 at 01:20:38 PM | There is a similar thread to this in the topic "Inventory Valuation - Average Cost"
I have just posted my 2 penny worth there.
I think that the stock valuation should be at the Average Cost, but having both latest and average on the report would be useful.
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| By: Guest | Posted on: Feb 3 2021 at 03:44:13 AM | I originally posted these messages, (not sure how i ended up with two threads).
I know there is no plans for this feature, but i still feel it really is important. We also don't care about historic data, just starting from new orders placed, calculate the average cost would be good enough for us. So the average would start by being the same as the standard/last, then slowly change as orders were placed with new prices.
However, we would need the ability to calculate assembly cost based on either standard(or last if thats how you set it) or average cost.
And of course the current total staock value based on standard or average.
But as i say, i don't think it's going to happen. | |
| By: Simon Q | Posted on: Feb 4 2021 at 06:43:33 AM | I hope you are wrong when you say you think it isn't going to happen. There are a few on this and the other thread asking, and as Rod says above, "More users would use this feature than you realize if it was available."
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