General Considerations

System integrations provide the flexibility needed to accommodate the many stock valuation methods throughout the distribution industries. Additional features support unique considerations of energy and chemical businesses and the demands placed on companies that must meet the requirements of many national and local regulatory agencies.

Stock valuation is a vital component of all distribution and manufacturing industries. It provides the information that you need for reporting purposes and to evaluate profit margins.

You calculate stock value on a periodic schedule. In general monthly, quarterly, and yearly. Business and government requirements determine when a company completes the reporting to:

• Measure and manage stock levels and related cash flow.

• Comply with the accounting standards that require companies to provide a true and fair value of the company's financial performance and capital used.

Stock valuation reporting is necessary for corporate, management, and statutory purposes. Corporate reporting analyzes the value of the company's stock and the cost of the stock that was sold (cost of goods sold). Management reporting verifies that the company's storage and handling methods comply with the laws enforced by various governmental organizations.