Weighted Value Recalculation
This recalculation routine will only be available if you are using a stock valuation method of Fixed Weighted. The routine enables you to select when you recalculate the weighted average value of your stock.
It is recommended that you run this recalculation monthly, especially if you are using Update Stock to Nominal, or at an appropriate period end. You should agree the frequency with your auditors.
You can select the stock items for which the recalculation will take place by entering search criteria.
A recalculation report will be produced including the transactions that are being used in the recalculation.
After you have printed the report to printer or file, you can update your stock values with the recalculated values.
You can run the report without updating your stock values.
Access to this function is controlled by your security profile.
To recalculate the weighted average value of your stock:
Enter selection criteria to limit the stock items that are revalued. You do not have to enter search criteria if you wish to recalculate the value for all stock items.
The Count option will calculate the number of records for which the recalculation will take place. If you are entering search criteria, this may confirm that the criteria is limiting the records correctly.
Select OK to start the recalculation.
You will be prompted to select the output for the recalculation report. Select screen, printer or file. The report is in Landscape format and you should adjust your printer settings accordingly.
On the output window you can select to subtotal the report by Stock Code or Sub Analysis.
By default, the option to include the transactions that are being used for the recalculation will be ticked. We recommend that you print the report with these details before updating, as the recalculation will impact your stock values.
If the report is printed to printer or file, you will be prompted to recalculate the Fixed Weighted Valuation. Selecting Yes, will complete the process by updating the system.
If you select Yes, there is a further step to post the transactional differences. You will be prompted to enter a date, period and year for the stock record adjustments.
If you are not using Update Stock to Nominal, you will only need to enter a date, period and year for the stock movements.
If you are using Update Stock to Nominal, as well as the stock movements the Nominal Ledger will also be updated. You will need to enter a date, period and year for the stock movements and the details for the Nominal Journals: Voucher Reference; Contra Account and Description.
You have the option to Post 1 line for each stock record should you consider this depth of detail is needed to enable you to trace the revaluation.
Select OK to complete the process.
The Weighted Value Recalculation report
For each stock code, the report will display:
Physical stock quantity; last weighted valuation; new weighted valuation, weighted value difference, Transaction Out Value Before; Transaction Out Value After and the difference between these two values.
For each transaction involved, the following details will be displayed:
Date and Period of the transaction; Reference; Cost Price; Quantity and Value.
Sub Analysis Stock records using Buying Units
You should be aware that, for Sub Analysis type stock records that use Buying Units, there is a potential for discrepancies between the Weighted Value After on this report and the Weighted Value on the main stock record.
The Weighted Value After on the report is the sum of the sub-analysis weighted valuations, based on all movements including landed costs.
To reconcile the figure on the report to the stock record, the valuation on the individual Sub Analysis records should be used.
Open the Sub Analysis window and view the Quantity tabs.