Introduction
Welcome to this user-friendly guide on the ‘Valuation Based On’ feature, a key component in the Bill Of Materials (BOM) within the Empress platform. This feature is crucial to your business, as it directly impacts the cost calculations of your inventory items.
Understanding and leveraging this feature can help your business manage inventory costs more effectively, bringing efficiency and accuracy to your operations.
Key Valuation Options
The ‘Valuation Based On’ field in the BOM offers three primary options for item valuation. Let’s explore each of these options:
Valuation Rate
The Valuation Rate option calculates item value based on the purchase or manufacturing cost of the item.
If you’ve purchased an item, the Valuation Rate is based on the charges stated in the Purchase Receipt. If an item doesn’t have an associated Purchase Receipt or a Stock Reconciliation, it won’t have a Valuation Rate.
Price List Rate
The Price List Rate option allows you to calculate item rates from your existing Price Lists, making it a handy feature if your company maintains standard price lists for different items or services.
Last Purchase Rate
The Last Purchase Rate option uses the most recent Purchase Order Rate of an item as the valuation rate. This method keeps your valuation rates updated with the latest market prices and is ideal for businesses that want to keep their inventory costs current.
Making the Most of the ‘Valuation Based On’ Feature
Choosing the appropriate valuation method is a critical step in effectively managing your inventory costs. Having a clear understanding of each of these options can guide your decision-making process, leading to improved accuracy and efficiency in your inventory management.
Conclusion
The ‘Valuation Based On’ feature in the Empress BOM is designed to simplify and streamline your business operations. By gaining a better understanding and control over your inventory valuation and cost calculations, you’re setting your business up for success.
For more resources or assistance, consider reaching out to our customer support or exploring our user-friendly guides. Remember, Empress is here to help your business thrive!
Note: To make your reading experience smooth and informative, this guide uses bold formatting to emphasize key words or phrases. The content is broken down into digestible sections, with each section focusing on a specific aspect of the ‘Valuation Based On’ feature.