The Intuitive ERP costing feature keeps track of standard, average and last (actual) costs for inventory items and allows you to select which costing type you wish to use as the accounting value for each of the items in inventory. Whenever the accounting value is updated, inventory is re-valued at this new cost.
Many companies choose to use standard costing as a management tool for controlling costs. They establish the standard costs using a standard rate per unit of finished goods when the plant is operating at normal capacity. Then, through the analysis of the amounts written to the variance accounts they are able to determine which areas of their manufacturing or purchasing process need attention. Average costing uses a weighted moving average that Intuitive ERP computes for the cost of items. Last costing uses the actual costs stored in the database for the item the last time it was manufactured or purchased. Regardless of which accounting value type you select, the standard, average, and last cost are calculated for each item for informational and reporting purposes.
The Intuitive ERP stock value report allows you to see your current inventory status, including the quantities for each item, current allocations, and the stock valuation. It can also be used to determine the value for your inventory at a specified date in the past and the portion of your company's money that is tied up in items that are obsolete.