HiFinance
5
SECTION
3.3.3 - STOCK REVALUATION
USAGE: To update the value-on-hand values. This is often
done as part of re-evaluation of old, or obsolete, stock. This allows proper
evaluation of Inventory values for insurance purposes and it allows proper
cost-of-sales calculations in Invoicing.
DISCUSSION: When you start the STOCK REVALUATION
program, the computer will initially ask for an Inventory code. Insert the code
and press <Enter>.
To return to the INVENTORY DATA ENTRY MENU, press <ESC>.
To search for an Inventory item, press <F9>. For further details on searches, see SECTION 1.2.
Having chosen an Inventory item, the screen will
display as follows:
The following is a description of the fields
displayed:
Name Comments
LOCATION This field is only relevant for companies using
multi-location stock. Otherwise the prompt does not appear.
DATE This defaults to the system date (the date at the
top of the screen). If you change it, HiFinance will retain the changed date
until you exit to the INVENTORY DATA
ENTRY MENU. You may press <F1> to insert today’s date.
STOCK-ON-HAND This field is displayed by the computer to show you
the current status of the item.
CURRENT UNIT PRICE This field is displayed by the computer to show you
the current status of the item.
NEW UNIT PRICE Here you enter new unit price of the item. This must be a positive
value or zero. If necessary, you can press <F9> to enter calculator mode.
COMMENTS You must enter a description here. Normally you would enter
something like OBSOLITE. Once you have entered
this, HiFinance will remember the value and you can repeat it by pressing <F1> until you return to INVENTORY DATE ENTRY MENU. There are 2 lines of description. The
first one is compulsory and the second may be left blank.
REVALUATION ACCOUNT This field will only appear if you have chosen Y or A in the utilities question ASK FOR G/LEDGER CODE IN INV. ADJ & REVAL? (see SECTION
7.1.2) Normally HiFinance will post
to the Inventory Revaluation account as defined in CONTROL ACCOUNTS (see
SECTION 6.5.2). If you enter a value here, it will
override the value in CONTROL ACCOUNTS. This can be useful if you have a
production department and you wish to purchase or sell stock internally posting
to a specific account. The other side of the transaction will still post to the
Stock-on-Hand account. You may use <F9> to search for an account.
At each point, you may cancel the transaction by
pressing <ESC>. However, it is possible to
return to a specific field by using <CsrUp> or <F8>. You can also finish the screen by pressing <F10>.
Finally you will be asked to confirm the update and
the computer will update the relevant files. When this has completed, you will
be returned to the Inventory code entry screen where you may either enter
another transaction or press <ESC> to return to the INVENTORY DATA ENTRY MENU.
Files updated by the Revaluation program:
Inventory
master-file: The total of the units will
be unchanged. The value-on-hand will be recalculated based on the new
unit-price.
Inventory
transaction file: The current
stock-on-hand will be removed with an adjustment transaction for the total units
and value on hand (unless zero). Then HiFinance will insert an adjustment
record bringing the stock level and value back up to where you have set them.
This offers a better paper-trail to just inserting a transaction for the
difference.
General
Ledger master-file: The Stock-on-Hand and
Inventory Revaluation (unless overridden) accounts are updated with the value
of the transaction.
General
Ledger transaction-file: A
transaction is posted for each General Ledger account updated, above.
