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Stock Mark to Market Valuation Change on Last day of Fiscal Year

A good question was raided by client today who is into retail furniture business. They would like to know how the valuation rate of all items can be changed to reflect the actual market value. Suppose an item was purchased at $100. But after few months the market value of the item has reduced to $ 80. Hence the item now needs to be revalued to $80/-. This needs to be done on the last day of fiscal year

Taking stock out and stock is a possibility but that is fine with few items. If items run in thousands then it a very difficult and not feasible. Any clues on how this can be achieved will help.

Do not use perpetual inventory?

Yes @Joseph_Marie_Alba1 . It has been ticked as Yes. Enable Perpetual Inventory

Without writing custom scripts? The only way I know is as you described: Taking stock out, then back in.

You could also treat the furniture as Fixed Assets, and depreciate them. But I do not “think” this impacts the actual stock value in ERPNext. I haven’t worked with assets yet in this ERP.

Create a stock reconciliation entry as of last day of fiscal year. Please mention updated valuation rate on reconciliation form.

https://docs.erpnext.com/docs/v13/user/manual/en/stock/stock-reconciliation

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This maybe a solution. Thank you

Asset can’t be sold. And they have fixed depreciation method. Thank you for response.