1. Reports Guide
  2. Appendix: Oracle Retail Xstore Office Reports
  3. Stock Valuation Overview

Stock Valuation Overview

Stock Valuation is a process that allows you to track the item stock value for receivables at the store for both corporate-created receiving documents and store-created receiving documents. This inventory valuation allows you to determine a monetary value for items that make up your inventory, and is dependent on a "year-end" process for the company. Stock valuation is based on the fiscal calendar.

All receiving documents must contain the items' cost to be used to calculate the stock valuation. (The cost is the amount charged to the franchisee/store.) When merchandise is received from the warehouse, the cost on the ASN/receiving document must be accepted or adjusted by the store in order to receive merchandise into inventory.

Note:

Store to store transfers must be implemented through the corporate office. The corporate office will be responsible for crediting the shipping stores' cost for the stock, and for applying the proper cost value for each item on the receiving document for the receiving store.

Some retailers may elect to carry the cost for corporate stores from the shipping store to the receiving store, but a corporate system will still be responsible for providing the cost per item to the receiving store.

Prerequisites and Assumptions

  • The inv_cst_item_yearend table must be populated with data for the previous year. For new retailers with no previous years' data, a record must be added for the previous year with quantity zero This information is required to run the Year End Rollup.

  • Reports are available from Oracle Retail Xstore Office only.

  • For reporting, the Arial Unicode MS font must be installed on the system.

Two methods of stock valuation are supported:

  • PWAC - Period Weighted Average Cost

  • WAC - Weighted Average Cost

Period Weighted Average Cost (PWAC)

WAC is calculated using the fiscal year-end summary from the prior fiscal year, plus receivings from this fiscal year.

When calculating PWAC for a previous year, the system uses the fiscal year prior to the requested fiscal year, plus the receivables from the requested fiscal year up to the requested date. You cannot simply use the posted values for the requested year since that includes the entire year.

ASN documents are used in the calculations. The status of the ASN document (CLOSED, OPEN, or IN PROCESS) is disregarded.

Weighted Average Cost (WAC)

WAC is calculated using the fiscal year-end summary from prior fiscal years (multiple), plus receivings from this fiscal year, up to the specified stock valuation date. Values from the item_cost_movements table are used to perform the calculations.

When calculating WAC for a previous year, the system uses the years prior to the requested year, plus the receivables from the requested year up to the requested date. You cannot simply use the posted values for the requested year since that includes the entire year.

ASN documents are used in the calculations. The status of the ASN document (CLOSED, OPEN or IN PROCESS) is disregarded.