Inventory valuation
Inventory valuation answers: how much is my stock worth? PLANA tracks this two ways: per-product and at the warehouse level.
Three costing methods
| Method | Behaviour |
|---|---|
| Standard cost | Manually set; doesn't change with purchases. Simple, predictable |
| FIFO (First In, First Out) | Each unit costs what you paid for it. Older stock = older cost |
| Average cost (AVCO) | Weighted average across all on-hand stock |
Configure per product category: Inventory → Configuration → Categories → category → Costing method.
Periodic vs perpetual
Two accounting integrations:
| Mode | What happens |
|---|---|
| Periodic | Stock changes don't create journal entries; you adjust at month-end |
| Perpetual | Every receipt / delivery / scrap creates a journal entry in real time |
Configure per category. Perpetual is the default for tenants doing serious inventory accounting — gives you a real-time balance sheet.
Stock valuation report
Inventory → Reporting → Inventory Valuation:
| Column | What |
|---|---|
| Product | The item |
| Quantity | On hand |
| Unit Value | Per the costing method |
| Total Value | Qty × Unit value |
Filter by location, by category, by date (for historical valuation).
The report's total ties to the Inventory account on the balance sheet.
When values change
| Event | Impact |
|---|---|
| Purchase order received | Stock value increases by qty × purchase_price |
| Sale order delivered | Stock value decreases by qty × cost (per the costing method) |
| Scrap | Stock value decreases; offset to inventory-loss expense |
| Inventory adjustment | Manual correction; offset to inventory-adjustment account |
| Production order completed | Components consumed; finished goods added |
In perpetual mode, each event auto-posts the journal entry.
Inventory adjustments
The physical count rarely matches the book count exactly. Regular adjustments keep them in sync:
Inventory → Operations → Physical Inventory:
- Print the inventory count sheet for a location
- Walk the warehouse, count everything
- Enter the physical counts back in PLANA
- Validate → PLANA posts the adjustment journal entries
Adjustments hit the Inventory Adjustment account (default 6090 or your tenant's equivalent). A material adjustment signals a warehouse-process problem to investigate.
Cyclic counting
Rather than one big annual count, cyclic counting counts a small subset each day. Each location has a "Cycle count frequency"; PLANA auto-schedules counts to keep coverage current.
A typical setup:
- A-items (high-value, fast-moving) — count weekly
- B-items — count monthly
- C-items (low-value, slow) — count quarterly
Configure in Inventory → Configuration → Locations.
Multi-currency products
For products bought in a foreign currency:
- The cost in the foreign currency is recorded
- Converted to the company currency at the receipt-date exchange rate
- The recorded cost in your books is in the company currency
FX fluctuations don't revalue stock automatically — that's a manual adjustment if needed (rare).
Where to read more
- Products and variants
- Stock locations
- Multi-currency
- Period closing — when inventory adjustments hit