Inventory Valuation

Formul provides a real-time Inventory Valuation report. This answers the question: “How much money do I have tied up in inventory right now?”

Weighted Average Cost (WAC)

Formul uses Weighted Average Cost to value your inventory.

• How it works: When you receive new stock at a different price, Formul updates the average cost of all units on hand.
• Formula: ((Current Qty * Current Cost) + (New Qty * New Cost)) / Total Qty

Example

1. You have 10 units @ $10.00. (Value: $100)
2. You buy 10 more @ $12.00. (Value: $120)
3. New WAC: $11.00 per unit. (Total Value: $220 for 20 units).

Viewing the Report

1. Navigate to Reports > Valuation.

2. You will see a table of all items with stock.

3. Columns:

   • Quantity: Current On Hand.
   • Unit Cost: The current WAC.
   • Total Value: Quantity * Unit Cost.

   

Note

Work in Progress (WIP): This report currently shows the value of completed items (Raw Materials and Finished Goods). Work in Progress is tracked on the Work Orders themselves until they are completed.