Why do I have a difference in the valuation to a given date in SIMS

Why do I have a difference in the valuation to a given date?

The main reason why you may have differences when you print the valuation report to a given date is mainly because of back posting. Please note that SIMS works in the weighted average costs formula to compute the cost of the valuation of all items in stock.

To assist in the exercise, we created a scenario of transactions for you to understand the impact the valuation makes when the option of back posting is used in SIMS. In the example below, we used the purchase transactions as a back posting entry. However, the same can be applied for sales posting, adjustments, WIP entries, and/or release of POS transactions from the import gateway.


Posting of Entries in Natural Order – Table 1
Natural Order
Type
Qty
Purchase/
Cost of Sale
Bal Qty
Average Cost
Balance Value
Mar-02
Purchase
100
10.0000
100
10.0000
1000.00
Mar-05
Sale
-20
10.0000
80
10.0000
800.00
Mar-15
Sale
-50
10.0000
30
10.0000
300.00
Mar-30
Sale
-20
10.0000
10
10.0000
100.00
Mar-29
Purchase
100
10.5000
110
10.4545
1150.00







Apr-02
Sale
80
10.4545
30
10.4545
313.64
Apr-10
Sale
30
10.4545
0
10.4545
0.00


In SIMS in Date Order as worked out by the Valuation to a Given Date – Table 2
Date Order
Type
Qty
Purchase/
Cost of Sale
Bal Qty
Average Cost
Balance Value
Mar-02
Purchase
100
10.0000
100
10.0000
1000.00
Mar-05
Sale
-20
10.0000
80
10.0000
800.00
Mar-15
Sale
-50
10.0000
30
10.0000
300.00
Mar-29
Purchase
100
10.5000
130
10.4545
1359.09
Mar-30
Sale
-20
10.0000
110
10.0000
1100.00







Apr-02
Sale
80
10.4545
30
10.4545
313.64
Apr-10
Sale
30
10.4545
0
10.4545
0.00


As can be confirmed from the above two tables, the valuation as at 31 March in natural order is € 1,150, while the actual valuation when computed in order of date is € 1,100. The valuation up to a given date uses the date order to process the valuation report. Both valuations will give the same result when all quantity in stock is sold.

As a guideline, and for users who make use of the SIMS and SFM interface, including the posting of the stock valuation, the correct figure is the Stock Control account value in the Balance Sheet in SFM, which in the above example will be the € 1,150.

Note: All values quoted are excluding VAT


    • Related Articles

    • Does the Aged Report in SIMS gives the same values of the Valuation Report?

      SIMS provides for the printing of an aged report from the Reports Menu, Stock Items, Aged Stock List. The aged report is based on the Last Purchase Date field available on each stock card. The options available are the following: Option to Group the ...

    • Valuation to a given date; filter by location

      When issuing a valuation to a given date but filtered for particular locations, the quantity will still be printed correctly but there might by some anomalies with the value of stock. This is explained in the example below.

    • How can I print a Purchase Ageing Report up to a given date?

      A user can print a purchases ageing report across different financial years. The report is called Ageing History, and it is found in the Reporting list under the Sales and Purchases Ledgers When this report is chosen, the user is given the print ...

    • How can I print a Sales Ageing Report up to a given date?

      A user can print a Sales Ageing Report across different financial years. The report is called an Ageing History, and it is found in the Reporting list under the Sales and Purchases Ledgers. When this report is chosen, the user is given the print ...

    • How to print a Trial Balance Report in SFM

      To create a Trial Balance report in SFM: Go to Current Year or Previous Year > Nominal > Chart of Accounts Reports > Trial Balance Reports, and click on the report type required. Once you have chosen your desired report type, a printer window will ...