You use this program to generate a report indicating the value of your inventory items aged over the last five years.
You can also define obsolescence percentages according to which you can offset the depreciation of your stock against tax.
An accountant will want to avoid overstating assets (i.e. stock) and to reduce tax liability by accruing for potential obsolescent stock. This report can form the basis for (and act as supporting documentation to) a journal which would be manually entered in the General Ledger.
| Field | Description |
|---|---|
| Sequence |
Indicate the order in which the report must be generated. |
| Print prior years |
Your selection here affects the number of columns printed on the report. The total for all years and the total for the current year are always printed. |
| 2 | Select this to print the current year's total in its individual column and to accumulate the values for years 2, 3, 4 and 5 as one value in the Year 2 column. |
| 3 | Select this to print the current and previous year's totals in individual columns and to accumulate the values for years 3, 4 and 5 as one value in the Year 3 column. |
| 4 | Select this to print the current and last 2 year's totals in individual columns and to accumulate the values for years 4 and 5 as one value in the Year 4 column. |
| 5 | Select this if you want to print each year's information in individual columns. |
| Report | |
| Detail | Select this to print a report showing details of all selected stock items, as well as a summary page of warehouse totals. |
| Summary | Select this to print only a summary page of warehouse totals. |
| Field | Description |
|---|---|
| Stock code selection | Indicate the stock codes that you want to include stock items in the valuation. |
| Warehouse selection | Indicate the range of warehouses for which you want to include stock items in the valuation report. |
| Product class selection |
This enables you to include stock items for a selection of products classes in the report. The product class is defined against the stock item using the Stock Code Maintenance program (Descriptive tab). If a specific product class is entered, then only stock items belonging to that product class are included in the valuation. |
| Supplier selection | This enables you to include stock items for a selection of suppliers in the report. The default supplier is defined against the stock item using the Stock Code Maintenance program (Replenishment tab). |
| Field | Description |
|---|---|
| Include items with zero quantity on hand | Select this to include items with zero quantity on hand. |
| Include items with quantity on hand less than zero | Select this to include items with a quantity on hand that is less than zero. |
| Include values |
Select this to print the unit cost and value of your stock items on the report. Otherwise only the quantity of each stock item is printed. The unit cost that is printed is taken from the current unit cost of the stock item, while the value of the stock item is derived from the quantity of each column multiplied by the cost. If FIFO costing is installed (Inventory Setup) then the costs that are printed when selecting the Include values option are based on the last cost. |
| Consolidate warehouse information | Select this to consolidate all warehouse values into one warehouse. Otherwise the values for each warehouse is printed on a separate line. The consolidated warehouse is identified by the characters - -. |
| Percentage required for obsolescence | Select this to indicate the obsolescence percentages for each prior year. This only applies if you select the Include values option. |
| Percentages for each year | Enter obsolescence percentages for each prior year that
you selected to print the aged valuation. The value printed in each column is multiplied by the percentage entered here for that year and is printed as an obsolescence amount. This only applies when you select the option. |
These options enable you to apply a theme to the report and to define multiple output destinations for the report once it has been compiled (SRS Output Options).
The Aged Inventory Valuation depletes the oldest cost bucket first when a sales order is invoiced. The old buckets are first reduced to zero before stock is consumed from the current bucket so it is possible that an invoice raised in the current year is deplete in a previous years' bucket for purposes of aged valuation.
In contrast, Inventory receipts (positive or negative) affect the current bucket first and, when negative, they work their way to the next youngest bucket.
You can only access this program if you selected the option: Aged inventory valuation required (Inventory Setup).
If stock on hand is allowed to go negative (Inventory Setup) then only the current year's bucket may go negative.
In addition, the current year's bucket can only go negative if all other buckets are zero.
The Balance function of the Inventory Period End program ensures that the quantity on hand is equal to the sum of the six yearly buckets (i.e. current and five prior years).
The Inventory Initial Aged Valuation program enables you to capture balances for prior years.