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Small and medium business | Business Central, N...

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Best Practice for Inventory Valuation for an item

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Posted on by MC-27050708-0

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Hello,

We have a customer requirement for correct Inventory Valuation where for the same part number 2 different scenarios are there as below:

1. Purchase the part

2. Manufacture the same part inhouse

As a result the cost of the part code varies. But inventory valuation will average out the cost and that gets reflected in Inventory valuation report.

What is the best practice for this?

(One suggestion was to create 2 different Item Code for the same part. But this will increase the number of Items in the system)

regards

Manjil

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Dynamics 365 Business Central

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Valentin Castravet 32,681 Super User 2026 Season 1 on at

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I don't believe using any out of the box functionality such as the inventory valuation report will work. You can either as you mentioned create two separate item cards, or if you have one item you can manually calculate the value of the inventory using the item ledger entries page.

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/

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