Inventory Management | Stock Valuation

FIFO or weighted-average, per item, posted on every movement.

Choose the valuation method per item category or warehouse. FIFO, weighted average, standard cost or specific identification. GL posts on every movement, and period-end reconciles to the inventory ledger within your tolerance. A method change is a controlled event, not a setting.

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What the system does

Capability, input, output.

Capability	Input	Output
Method configuration	Item category + valuation policy	Per-item method assignment
FIFO costing	Receipt cost layers	Issue costed on oldest layer
Weighted average	All receipts in the period	Period weighted-average cost
Standard cost	Standard rate + variance tracking	Variance to GL for analysis
Specific identification	Serial-level cost	Issue costed at the unit level
GL reconciliation	Stock register + inventory GL	Period-end reconciliation report
Method change workpaper	Method + change history	Impact on opening stock and on the period, ready for review

Method configuration

Input

Item category + valuation policy

Output

Per-item method assignment
FIFO costing

Input

Receipt cost layers

Output

Issue costed on oldest layer
Weighted average

Input

All receipts in the period

Output

Period weighted-average cost
Standard cost

Input

Standard rate + variance tracking

Output

Variance to GL for analysis
Specific identification

Input

Serial-level cost

Output

Issue costed at the unit level
GL reconciliation

Input

Stock register + inventory GL

Output

Period-end reconciliation report
Method change workpaper

Input

Method + change history

Output

Impact on opening stock and on the period, ready for review

Compliance + integrations

Valuation that audits clean.

ASC 330 compliance with the chosen method. A method change requires CFO approval and CPA review, because consistency between periods is the point of having a policy at all. The change posts with a workpaper showing what it did to opening stock and to the period.

Regulations we work within

ASC 330

FIFO, weighted average and specific identification all aligned with the standard.
Net realisable value

Write-down to NRV surfaced where cost exceeds it, rather than carried until someone notices.

Connects to

Xero Stock valuation sync
QuickBooks Native connector

Stock Valuation FAQ

What buyers ask.

Can we use different methods for different categories?

Yes. FIFO for perishables, weighted average for commoditised items, standard cost for manufactured items. The system supports per-category method assignment with the CA-approved policy on file.

Do taxes and duties go into the inventory value?

Import duty does, because it is a cost of bringing the goods to their present location and condition. Recoverable input tax does not, where the regime gives it back. The distinction sounds academic until an importer capitalises the input tax and overstates inventory by the whole of it, which is a common enough error to be worth checking on day one.

How is a method change handled?

Method changes require CFO approval and a transition workpaper showing the impact on opening stock and on the period. Your accountant reviews it for consistency between periods, and the change posts on the cut-over date with the audit trail capturing who approved it. What you cannot do is change it quietly, which is the whole reason it is a workflow.

Reconciliation between stock register and inventory GL?

Both update in the same transaction, so they should match. A per-item tolerance is configurable for rounding. Beyond it, the variance surfaces for the controller rather than being absorbed, because a valuation that quietly disagrees with the ledger is the finding nobody wants to explain at the audit.

Related features

Run last quarter's valuation on your data.

Connect one warehouse, free. Pick a method per category. The system runs the valuation against your last 90 days of movements and surfaces the GL reconciliation gap.