Real-Time Inventory Valuation

Real-Time Inventory Valuation in PrismERP keeps track of the value of stock as it moves. Every time products are purchased, sold, issued, transferred, or adjusted, the system updates both the stock quantity and its cost immediately. This means inventory is always accurate, and there’s no need to wait until the end of the month or a reporting period to see the true value of stock.

For example, imagine 10 units of a product are purchased at 100 BDT each. PrismERP records 10 units in stock with a total value of 1,000 BDT. Later, if 5 more units are purchased at 110 BDT each, the system updates the total stock to 15 units and the inventory value to 1,550 BDT.

When some stock is sold or issued, PrismERP calculates the Cost of Goods Sold based on the costing method selected during system setup. Using FIFO as an example, if 8 units are sold, the system takes 8 units from the oldest stock and calculates the cost as 8 × 100 BDT = 800 BDT. The remaining stock consists of 2 units from the first batch at 100 BDT each and 5 units from the second batch at 110 BDT each, giving a total inventory value of 850 BDT.

This real-time valuation applies wherever stock moves in the system. Whether it’s a new purchase, a sales delivery, a production issue, a warehouse transfer, or a stock adjustment, PrismERP updates the quantity and value automatically. The costing method is chosen during the backend setup of the system, so it works consistently across all transactions .Once it’s set, every stock movement follows that method, keeping inventory values and COGS accurate at all times.