Inventory > Setup > Inventory Initial Aged Valuation

Inventory Initial Aged Valuation

You use this program to take on a stock item's year end quantity on hand for the last five years.

This facility is useful when you carry a limited stock of spare parts for component items that may have a long life (e.g. spares for motor vehicles, aircraft, etc.) and you need to provide for the depreciation of these items annually.

You normally use this program at the time of implementation, or when first selecting the option: Aged inventory valuation (Inventory Setup) to enter previous years' results. Thereafter, the system automatically maintains this information for you.

Refer to Updating of Aged Valuation Buckets for information on how aged valuation buckets are updated.

Inventory Initial Aged Valuation

Field Description
Stock code Indicate the item for which you want to take on valuation details.
Aged Valuation Take-on Select this to take on the stock item's year end quantity on hand.

Aged Valuation Take on

This screen is displayed when you select the Aged Valuation Take-on function.

Field Description
Stock code This indicates the item for which you are maintaining the take on valuation details.
Warehouse Indicate the warehouse for which you want to take on valuation details.
Quantity on hand Displays the current quantity of the item in the selected warehouse.
Quantity for current year

Indicate the quantity on hand for the current year.

A negative quantity cannot be entered.
Quantity for year ending

Indicate the quantity on hand for the stock item at year end for the previous 5 years.

A negative quantity cannot be entered.
Quantity outstanding This indicates the difference between the current warehouse quantity on hand and the sum of the quantities on hand for each of the six years.
[Note]

You will be unable to save your data if this field does not equal zero (i.e. the quantity on hand is equal to the sum of the six yearly buckets - current and five prior years).
Save Select this to save the changes you made and to return to the previous screen.
Close Select this to ignore any changes you made and to return to the previous screen.

Updating of Aged Valuation Buckets

Aged valuation buckets are updated by the following processing functions:

Function Description
Sales order invoices This decrements the quantity in the oldest bucket which contains a quantity. If there is insufficient quantity, the bucket is reduced to zero and the next oldest bucket is reduced by the remainder (if there is insufficient in this bucket then this is reduced to zero and the next oldest reduced by the remainder, etc). A negative invoice increments the quantity in the oldest bucket which contains a quantity greater than zero.
Sales order credit notes This increments the quantity of the oldest bucket which contains a quantity. A negative credit note reduces the quantity in the oldest bucket which contains a quantity greater than zero. If there is insufficient stock in this bucket, then the remainder is taken from the next oldest bucket.
Sales order debit notes This decrements the oldest bucket that contains a quantity (in the same way as an invoice). Negative debit notes increment the quantity in the oldest bucket that contains a quantity greater than zero.
Sales order IBTs This is treated in the same way as an invoice. A negative IBT is treated in the same way as a negative invoice.
Inventory receipts A positive receipt into stock increments the current year's bucket. A negative receipt into stock reduces the current year's bucket. If there is insufficient stock in this bucket, then the remainder is taken from the next youngest bucket.
Inventory Adjustments A positive adjustment of stock increments the quantity in the current year's bucket. A negative adjustment of stock decrements the quantity in the oldest bucket that contains a quantity greater than zero.
Inventory issues A positive issue from stock decrements the quantity in the oldest bucket where the quantity is greater than zero. If this causes a shortage, then the remainder is taken from the next oldest bucket. A negative inventory issue increments the quantity in the oldest non-zero bucket.
Physical quantity adjustment An adjustment that causes the quantity on hand to increase is treated in the same way as a positive inventory adjustment. An adjustment causing the quantity on hand to decrease is treated in the same way as a negative inventory adjustment.
Transfer from this warehouse This is treated in the same way as a positive inventory issue.
Transfer to this warehouse This is treated in the same way as a positive inventory receipt.
Purchase order receipt This is treated in the same way as an inventory receipt. A negative purchase order receipt is treated in the same way as a negative inventory receipt.
Backflushing The finished item is treated as a receipt into stock and the components are treated as an issue from stock. If there is insufficient stock of these components to satisfy the demand, then the issues of lower down components are treated as inventory issues, and the receipts of these components are treated as inventory receipts. When processing a negative Backflush, negative issues and negative receipts occur.
Work in Progress Kit Issues This is treated in the same way as inventory issues. Negative issues are treated as negative inventory issues.
Issues to Work in Progress This is treated in the same way as issues from inventory. Negative issues are treated in the same way as negative issues from stock.
Accounts Receivable Invoices, credit notes and debit notes are treated in the same way as if they had occurred in Sales Orders, if the option to update stock is selected.
Stock Take System When a stock take is confirmed and the quantity counted is greater than the original quantity on hand, a positive inventory adjustment is performed. If the quantity counted is less than the original quantity on hand then a negative adjustment is performed. These are treated as inventory adjustments.
Interface System Stock changes that occur at another branch, and are brought into this company using the Interface system are treated as if they had been keyed into this company normally.

Notes and warnings

Program access

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