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Microsoft Dynamics NAV 2016 Financial Management - Second Edition by Laura Nicolàs Lorente, Cristina Nicolàs Lorente, Anju Bala

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Inventory valuation

The valuation of your inventory must appear on your balance sheet accounts at the end of a fiscal year. The system can calculate the inventory valuation using different costing methods and can post it to the general ledger automatically, so that you do not have to worry about it. Due to performance issues, though, the inventory valuation is usually set up, so that posting to the general ledger is done manually.

Choosing a costing method

Dynamics NAV can calculate the valuation of your inventory according to five different costing methods: They are as follows:

  • First In First Out (FIFO): It assumes that the first units to be received in your stock will also be the first ones that will leave it. The inventory valuation will be based ...

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