REVALUATION
You can revalue the inventory based on the valuation base that most accurately reflects the inventory value. You can
also backdate a revaluation, so that the cost of goods sold (COGS) is correctly updated for items that have already been
sold. Items using the Standard costing method that have not been completely invoiced can also be revalued.
In Microsoft Dynamics NAV, the following flexibility is supported regarding revaluation:
The revaluable quantity can be calculated for any date, also back in time.
For items using Standard costing method, expected cost entries are included in revaluation.
Inventory decreases affected by revaluation are detected.
CALCULATING THE REVALUABLE QUANTITY
The revaluable quantity is the remaining quantity on inventory that is available for revaluation on a given date. It is
calculated as the sum total of the quantities of completely invoiced item ledger entries that have a posting date equal to
or earlier than the revaluation posting date.
Items using the Standard costing method are treated differently when calculating the revaluable quantity per
item, location, and variant. The quantities and values of item ledger entries that are not completely invoiced are
included in the revaluable quantity.
After a revaluation has been posted, you can post an inventory increase or decrease with a posting date that comes
before the revaluation posting date. However, this quantity will not be affected by the revaluation. To balance the
inventory, only the original revaluable quantity is considered.
Because revaluation can be made on any date, you must have conventions for when an item is considered part of
inventory from a financial point of view. For example, when the item is on inventory and when the item is work in
process (WIP).
EXAMPLE
The following example illustrates when a WIP item transitions to become part of inventory. The example is based on the
production of a chain with 150 links.