Revalue stock

There is published guidance regarding the presentation of the value of stock in accounts, such as FRS 102 (sometimes referred to as UK General Accounting Reporting Practices). Sometimes circumstances occur where the cost value of the stock is no longer valid and another value must be used. The revaluation process is designed to support the process of amending the value used for the entire stock of a single item. Use Revalue stock to show a decrease in the market value of all stock held for an item.

Stock items that use FIFO, average or actual cost have their value based upon their cost i.e. what was paid to the supplier, or what it cost to manufacture the item. Sage 200 creates an average buying price for the stock item. This is displayed when you choose to revalue an item. You can amend this to the price you want the item to be issued at, although the buying price must always be greater than zero.

Following revaluation all the stock held for the item processed will be valued at the cost specified during revaluation, including batches and serial number issues.

If you revalue items of actual cost, you will no longer have a record of the original cost of the stock item.
If you need to make a correction to the actual cost of a specific batch or serial item, if invoices prices were entered incorrectly, for example, do not use the Revalue stock option. Instead, write off the specific batch or serial number item and then add it into stock again at the correct price.

You cannot revalue the following:

Stock items that use the standard costing method.
Stock items that have a negative or zero stock level, such as when a stock item has been received but not confirmed or when there is a stock shortfall.
Stock items that are Phantom BOM built items.

Outcomes

When you specify a new price, the stock item is revalued as follows:

The entire holding of the stock item is assigned the new buying price.
The average cost of the stock item is set to the new buying price.
The buying history of the item is cleared.

You can still view individual receipts but you can no longer see the multiple buying prices.
The difference in the value of the stock is posted to the following two nominal accounts: the default stock nominal account for the item, and the Revaluation nominal account that you have specified. The transaction date is the current system date on your PC.

Before you begin

Before you can revalue stock:

The stock level must be greater than zero.

Revalue stock

To revalue stock