Inventory valuation refers to how you value your stock. It’s a very important aspect of a business as the inventory can be the biggest asset of a company.
In this documentation, we will explain how the inventory valuation works in CpaBooks
Each time a product enters or leaves your stock, the value of your inventory is impacted. The way it is impacted depends on the configuration of your product (more info here).
Let’s take an example with a product - a table - configured with a FIFO costing method and an automated inventory valuation.
I purchase 10 tables at a cost of $10.