2 Overview to Advanced Stock Valuation Processing
This chapter contains these topics:
2.1 Objectives
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To understand the information sources needed to value your company's stock
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To determine the value of your company's stock
2.2 About Advanced Stock Valuation Processing
The central function of stock valuation is to establish a cost of your ending inventory based on the period's activity and the prior periods' layers. The accuracy of this value and costs relies on information from other systems.
Complete the following tasks:
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Understand the information sources for stock valuation
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Understand dual currency
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Determine the value of stock
The systems that integrate with stock valuation store all inventory activity in a central table known as the Cardex (Item Ledger). The Advanced Stock Valuation system:
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Extracts the period's activity from this table
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Builds historical layers based on the activity
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Stores the information in a transaction table
Stock valuation provides vital information for reporting and profitability. It is important that all stock is valued with the correct costs. Therefore, the Advanced Stock Valuation system provides you with opportunities to review and analyze the results of the extraction before you update the general ledger. Additionally, you have the option to implement steps to review and approve the valuation before you actually post it. With dual currency, you can value stock based on a stable currency in addition to the domestic currency.
Figure 2-1 Advanced Stock Valuation System
Description of "Figure 2-1 Advanced Stock Valuation System"