Analyze Inventory Valuation

When you process various transactions, the inventory value keeps changing. The Review Inventory Valuation page helps you analyze and understand the inventory valuation at various levels like cost organization, inventory organization, subinventory and valuation unit.

To analyze the inventory valuation, complete the steps listed here.

1. In the Cost Accounting work area, select Review Inventory Valuation from the task panel.

2. On the Review Inventory Valuation page, query the inventory valuation by cost organization, cost book, period, and valuation structure type.

   You can query separately for the valuation structure types asset, consigned, and expense.

The inventory valuation information for the selected cost organization, cost book, and period displayed on the Review Inventory Valuation page is described in this table.

Column	Description
Inventory Value	The total inventory value for the selected period.
Prior Inventory Value	The total inventory value at the end of the prior period.
Period Activity	The difference in inventory value between the two periods.
Period Costed Value	The sum of all costed receipt and issue transactions for the selected period.
Period Accounted Value	The costed value that’s final accounted.
Last Summarized Date	The date and time when the cost reports processor was last run.
Last Cost Processor Run Date	The date and time when the cost processor was last run to create the cost accounting distributions.

The inventory valuation is further summarized by valuation unit, inventory organization, and subinventory. By default, the inventory valuation summary by valuation unit is displayed on the page. You can choose the other summarization options by selecting the appropriate value from the View By drop-down list.

When you set View By to Valuation Unit, the table on the Summary by Control Attribute tab of the Review Inventory Valuation page shows the inventory valuation information listed here for each valuation unit.

• Inventory Value

• Prior Inventory Value

• Period Activity

• Period Costed Value

• Period Accounted Value

When you set View By to Inventory Organization, the inventory valuation information for each inventory organization is displayed in the table on the Review Inventory Valuation page. When you set View By to Subinventory, the inventory valuation information for each subinventory in each inventory organization is displayed in the table on the Review Inventory Valuation page.

When View By is set to Inventory Organization or Subinventory, the default value for Display is Inventory Value and the table shows this information:

• Inventory Value: The inventory value for the selected period.
• Prior Inventory Value: The inventory value for the immediate prior period.

This helps you to review and analyze the inventory value at the inventory organization and subinventory level, where the on-hand quantity and unit cost at that level is used to determine the inventory value.

If you set Display to Costed and Accounted Value, the information listed here is shown on the table:

• Total Costed Value: Sum of all costed receipt and issue transactions from the first open period till the Last Summarized Date, if you're viewing the data for the current open period. If you are viewing the data for a past period then the transactions till the period end date are considered.

• Prior Total Costed Value: Sum of all costed receipt and issue transactions from the first open period till the prior period end date.

• Period Costed Value

• Period Accounted Value

The summarized inventory valuation information can be exported to a spreadsheet by using the Export to Excel icon above the summary table.

To view the inventory value by item, you can click the Item Details in the summary table. The Inventory Value by Item page provides the inventory valuation information for each item along with quantity for the current period and at prior period end date. You can filter the information displayed on the page based on any of the columns. For example, you can filter the information based on value or quantity.

The UI also displays a warning icon wherever the Period Accounted Value is not same as the Period Costed Value. On the Inventory Value by Item page, when you click this warning icon, the Transaction Details dialog box is displayed. This dialog box lists all the unaccounted transactions for the item and valuation unit and the transactions that are costed and accounted in different periods, if any.

Note:

• Period inventory valuation and period layer inventory valuation can only be compared at the valuation unit level. The inventory control attribute level values from the period inventory valuation cannot be compared with the period layer inventory valuation because layer inventory valuation does not have summary at the subinventory level.