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Real-Time Inventory Valuation

Real-Time Inventory Valuation in PrismERP ensures that your inventory value is always up-to-date based on the latest transactions and stock movements. This feature gives businesses instant visibility into the current worth of their inventory—crucial for decision-making, financial reporting, and operational efficiency.

What is Real-Time Inventory Valuation?​

Real-Time Inventory Valuation is the process of continuously updating the financial value of stock items as inventory transactions (like purchases, sales, issues, and adjustments) occur. Instead of calculating values periodically or manually, PrismERP automatically updates the value of each item and overall inventory whenever changes happen.

How It Works​

  • Every time a stock transaction is processed (e.g., goods receipt, stock issue, return, transfer), the system recalculates the inventory value based on the selected costing method (FIFO or Weighted Average).
  • The updated value is reflected in the stock ledger, inventory reports, and financial statements.

Real-Time Valuation in Action​

Here’s how the value is updated live across modules:

  • Goods Receipt Note (GRN): Adds new stock and updates valuation using purchase price.
  • Sales/Issue: Reduces inventory and deducts value using FIFO or average cost.
  • Adjustments & Reconciliation: Recalculates total value instantly based on adjustments made.
  • Stock Transfer: Moves stock between warehouses without affecting total value, but reflects location-based valuation.