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How is the item Valuation rate updated?


#1

How does the valuation rate in the item master get updated? For instance when a BOM is created and the cost calculated - how does this data get into the item master? Also for purchased items - is there a way to update the valuation from either the price list or the last purchased price?

I would expect that there should be a process to allow a single item to be updated when it is newly created but there should also be a process which allows all valuations to be updated at a point in time when for instance work center rates are increased.

Thanks.


#2

This should help:

https://frappe.erpnext.com/kb/stock/how-valuation-rate-is-calculated-for-an-item


#3

This article appears to say how the stock value is calculated during an inwards receipt. What I was looking for was how the valuation rate in the item master is updated? Am I now to understand that this is purely a manual field and isn’t automatically updated in any way?


#4

In the item master, you can add the valuation rate at the beginning. If left empty, it will fetch the rate based on inward entry or production entry.


#5

Thanks, but this doesn’t appear to be what I am seeing. I’ll run some more tests.

What if your work center costs increase and you need all BOMs to be updated with the new costs and the valuation rate updated. As it already has a figure in it, will it not be updated?