Create inventory cost revaluations

Create an inventory cost revaluation to set or update the standard cost of an inventory item at a location. Open Menu > Products and services > Manage inventory.

Before you begin

The item must be active and use the Standard costing method. If no eligible item exists, create or update an inventory item and select Standard as its costing method before continuing. Create an adjustment account if an appropriate account is not available.

Create an inventory cost revaluation

  1. Open Menu > Products and services > Manage inventory.
  2. In Inventory cost revaluations, select Create new. You can also open Inventory cost revaluations and select Create inventory cost revaluation.
  3. Confirm the Date.
  4. Select the Location and the inventory Item.
  5. Select the Adjustment account.
  6. Enter the new Cost and optionally enter a Memo.
  7. Review the calculated adjustment amount.
  8. Select Submit.

The item’s standard cost is updated for the selected location. An increase in inventory value debits the item’s inventory asset account and credits the selected adjustment account. A decrease reverses those directions. Open the completed revaluation and select Accounting to review the amounts and configured account names.

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