Understanding Stock Valuation at the Item or Pool Level

The JD Edwards EnterpriseOne Advanced Stock Valuation system can compute the value of stock at the item level or the pool level. If you want to value stock at the item level, the system calculates the cost and value of each item. To value stock at the pool level, group items of similar products and relatively similar purchase prices, using these guidelines:

• If you define the pool's valuation method to use a summary layer, the system applies a single purchase price to all items in the pool for a period.

• If you define the pool's valuation method to provide detailed layers, the system uses each purchase as a layer to determine the pool's value.

You can value part of the stock at the item level and part of the stock in pools. The primary method of valuation (the method that the system uses to update the GL) must be the same for all items and pools within a company.

You assign pools only for items that you want to value at the pool level. If you want to value an item only at the individual item level, do not assign a pool to that item. If you are assigning pool codes to items, you must enter the pool code at the branch/plant level for each item that you want to include in a pool.