Item Valuation from Purchase Charges

ERPNext Stock/Inventory
1

I wanted to check the ideal way to do this.

Steps followed:

  1. Entered a PO for $11033 for 68 items. ($162.25 per item)
  2. Received these items in my warehouse at the same rate with a PR.
  3. While invoicing, I also got a bill for my transport for $250. I entered it in the Taxes and Charges selecting ‘Valuation and Total’ for the charge. My total becomes $11033 + $250 = $11283 so ideally Item valuation should be 11283/68=$165.92.

This is not happening. My valuation remains to be $162.25. Is there any step which is incorrect/I’m missing?

Thanks a lot!

Continuing the discussion from Inventory Valuation for Purchase Charges:

2

Hi.
-If you are adding taxes then valuation rate should be 165.92.

  • but if you are not adding taxes then valuation rate should be 162.25

In following example I have explain “Valuation Rate”
Suppose you have created purchase receipt PR-2 then first check purchase receipt PR-1 is exist for same item or not . if exist , then

1.Create First purchase receipt for item ‘Book’ as PR-0001 with
Item =Book , Qtty = 10 , Rate =80

Amount = 10* 80 = 800
Taxes and Charges=250
Grand Total = 800+250 =1050

After submitting PR-0001 then Go to Stock → Main Reports → Stock Balance
Here
Closing Qty =10 (qty of PR-0001)
Closing Value =1050 ((Grand total of PR-0001)
Valuation Rate= Grand Total /Qty
=1050/10
=105

2.Create second purchase receipt for Item ‘Book’ as PR-0002
Item=Book , Qty=10 , Rate=100

Amount= 10*100=1000
Taxes and Charges=250
Grand Total = 1250

After submitting PR-0002 then Go to ‘Stock Balance’ report and check Valuation Rate
Here
Closing Qty = 20 (qty of PR-0001 and PR-0002)
Closing Value = 2300 (Grand total of PR-0001 and PR-0002)
Valuation Rate =Closing Qty/Closing Value
=2300/20
= 115

Geetanjali Shitole
New Indictrans Technologies Pvt. Ltd.

2 Likes
3

Thank you Geetanjali, appreciate the illustrative response.

So, to conclude, Item Valuation is only affected in Purchase Receipts not
in Purchase Invoices is that correct?

I guess same would be the case in Sales as well for Delivery Notes.

4

-Item Valuation not affected after purchase Invoice.
-Stock updations are based on Stock Entry, Purchase Receipt and Delivery Note.

Geetanjali Shitole
New Indictrans Technologies Pvt. Ltd.

5

You should use Landed Cost Voucher to change valuation after Purchase Receipt.

https://erpnext.com/user-guide/stock/landed-cost