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Jun 27, 2017 at 09:23 AM

In standard cost release, How to avoid revaluation of old stock ?

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Hi All

I have a query related to Inventory revaluation. It is in context of Indian client having continuous manufacturing operation. Has 3 company code across 3 countries.

When Standard cost is released, system revalues total inventory while client wants revaluation should happen only for 1 month old inventory.

Revaluation of total inventory causes financial posting in system for old stock also. e.g. I have 6 months old stock ( e.g. 100 units ) and Standard price has now increased by 1 INR.

System will post following entry

Dr Inventory 100 [B/S ]

Cr Inventory revaluation 100 [P&L ]

Please share your views how inventory revaluation of old stock can be avoided. Do other Indian / Global company have similar requirement ??

Does accounting standard specify that only current month inventory should be revalued ? Can FIFO/LIFO valuation method help in this context ??

Regards

Kapil