We have added the default Valuation Method as FIFO in the Stock Settings. So for each item that we create the default valuation method will be FIFO.
We have created an item with opening stock 10 with a standard selling rate as Rs.5 each. At this instance the valuation rate is Rs 5 based on FIFO (checked in stock ledger).
Now for the same item, we have made another stock entry i.e. Material Receipt with 10 items and the rate of the item is Rs 10 each.
So, again based on FIFO the valuation rate should be Rs 10, but in stock ledger it shows as Rs 7.5
Now we try to create a Delivery Note (Note: In selling settings we’ve checked the checkbox for Validate Selling Price for Item against Purchase Rate or Valuation Rate)
So, when we make the Delivery Note to sell 10 items, based on FIFO the valuation of those 10 items should be Rs. 5, but we get the validation that the selling rate of Rs. 5 is less than the valuation rate of Rs. 7.5 and does not allow us to save the delivery note.
So, how can we ensure that the selected valuation method (in this case FIFO) is used and the valuation rate is based on that method?
For video of above issue you can refer to this link: