Inventory Revaluation allows you to re-evaluate your item costs and inventory value without changing quantity levels. Typically revaluation is done during the year-end closing process.
Log into SAP
1. Select: Inventory (from the Main Menu)
2. Select: Inventory Transactions
3. Select: Inventory Revaluation
Your screen should look like this:
4. Select the Series type
- a. The numbering series for the document
5. Select the Revaluation Type
- a. Price Change
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- This will change the cost of the item and calculate the value of the whole inventory according to the new price
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- b. Inventory Debit / Credit
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- Select to revaluate by changing the inventory value, which will case the item cost to change accordingly
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6. Ref. 2
- c. Enter a Reference for the journal entry- optional
7. Remarks
- d. Your notes for future reference
Option 1: Using the “Price Change” Revaluation Type Method:
Select to change the cost of the item and calculate the value of the whole inventory according to the new price.
a. Select the Item Number
b. Enter the “New Cost”
c. FIFO Layers will remain Blank if there are no layers
8. Select “Add” to update the Revaluation Price Change
Option 2: Using the “Inventory Debit / Credit” Revaluation Type Method:
Select to revaluate by changing the inventory value, which will cause the item cost to change accordingly
a. Choose Series Type
- a. Select the Revaluation Type “Inventory Debit / Credit”
a2. Enter Ref. 2 for Journal Entry note
b. Enter Item Number
c. Enter Item Description (Whse, Current Cost, Instock & GL Account Numbers will auto populate with Item Number selection).
d. Enter new amount in Debit/Credit field
e. Issued Layers
- Checking this box will display all layers (including empty layers) for the item in the FIFO Layers table
- This column will be disabled for Moving Average and Standard Inventory Items
f. G/L – Increase and Decrease Accounts
- Define the G/L accounts to be used as the balancing account in the transaction created by the revaluation.
- G/L Increase Account is used when the inventory value is increased due to the revaluation
- G/L Decrease Account is used when the inventory value is decreased due to the revaluation
g. Distribution Rule
- Enter the distribution rule / profit center to which the revenue resulting from the revaluation is allocated
h. FIFO Layers
a. Will remain blank if there is no FIFO Layers table
i. All Grayed out fields cannot be modified
j. Enter Remarks
k. Select Add