WIP INVENTORY REVALUATION
Revaluation of WIP inventory implies revaluing components that are registered as part of WIP inventory at the time of
the revaluation.
With this in mind, it is important to establish conventions as to when an item is considered part of the WIP inventory
from a financial point of view. In Microsoft Dynamics NAV, the following conventions exist:
A purchased component becomes part of the raw material inventory from the time of posting a purchase as
invoiced.
A purchased/subassembled component becomes part of the WIP inventory from the time of posting its
consumption in connection with a production order.
A purchased/subassembled component remains part of the WIP inventory until the time when a production order
(manufactured item) is invoiced.
The way the valuation date for the value entry of consumption is set, follows the same rules as for non-WIP inventory.
For more information, see the “Determining if an Inventory Decrease Is Affected by Revaluation” section in this topic.
WIP inventory can be revalued as long as the revaluation date is not later than the posting date of the corresponding
item ledger entries of type Consumption and as long as the corresponding production order has not been invoiced yet.
The Inventory Valuation - WIP report shows the value of posted production order entries and may therefore be
a little confusing for WIP items that have been revalued.
SEE ALSO
Inventory Costing
Costing Methods
Inventory Valuation