Inventory Valuation

The Inventory module allows your organization to valuate inventory. Valuating inventory requires a Full Inventory license, which allows use of this Inventory module.

Note

The Basic "Lite" Inventory license, which comes with licensing for eService or eSite / eService, does not allow for valuation of inventory, but does allow the use of non-valuation inventory functionality in the eService module. Refer to the eService help for more information about how inventory works in eService.

About Inventory Valuation

If your company uses Inventory Valuation, some of the functions controlled are:

Method of Valuation:
- LIFO - which means Last In, First Out
- FIFO - which means First In, First Out
- Average Cost
Method of charging items to a Job (Standard or Average cost)
Inventory history tracking
Inventory module interfaces with the Purchase Order and Job Cost modules
Posting features, i.e., transactions post to the system.
For example, invoices for Inventory Items can be added in eFinancials when valuating inventory as eFinancials is designed to post invoices. When not using inventory valuation, however, the system only tracks quantity but does not post invoice transactions; therefore, invoices for these items cannot be entered in eFinancials.