Understanding the Stock Valuation Processing Mode

You can set the Processing Mode field in the Stock Valuation Constants to either Period or Annual. The mode you select determines how often the stock valuation records are processed.

When you set the processing mode to Period, the system processes stock valuation records for each accounting period as determined by the company setup and by the number of periods within a year. You then run the Stock Valuation GL Update program (R39130) at the end of each period to update the stock valuation, including posting to General Ledger (GL) accounts. The system also clears the Period Detail Work File table (F39120W) and creates the initial stock valuation record for the next period. Period mode creates a stock valuation record in the Valuation Period Table (F39061) for each period within a year.

When you set the processing mode to Annual, the Period Build program (R39120) extracts stock transactions for the entire year. You then run the Stock Valuation GL Update program (R39130) only at the end of the final period of the company's fiscal year to update the stock valuation, including posting to GL accounts.