Understanding Valuation Methods

You must assign a valuation method to each item and pool that you want to value. The system uses this information to calculate the value of the stock. If you want to update the general ledger, you must assign only one method as the general ledger update for all items and pools. The valuation method that you use to update the general ledger is often called the primary method.

You can assign any number of auxiliary methods. The system uses the auxiliary methods to track the value of stock for comparison or reporting purposes, but does not post the auxiliary results to the general ledger.

When you use the Item Pool Valuation Maintenance (P3904) program to add an item or pool, the system verifies that it does not yet exist in this table. The system stop you from making duplicate entries for the same item or pool.

If you are using dual currency, you can specify for each valuation method within a company and item/pool whether to enable dual currency.