For a line item from a goods receipt to be included in the calculation of the stock valuation, a purchase price must be set. If you process your supplier orders via Pickware, this is usually the case.

If the prices of a goods receipt are in a foreign currency, the valuation uses their value in your shop's default currency. The conversion uses the exchange rate stored on the goods receipt. You can find out more in the article How can I purchase from suppliers in a foreign currency?.

If there is no goods receipt for a stock quantity, Pickware uses the purchase price on the product. Pickware takes this from the Shopify field Cost per item (net). This only works if the import of the purchase price is active. If it is excluded, activate it in the settings of your Shopify Sales Channel in the Product import tab and then trigger the product import again.

When creating a stock valuation, the tax rate stored on the product is used to calculate the stock value. However, Shopify often only transfers the default tax rate, even if a product is sold in Shopify at a reduced tax rate (e.g. 7%).

Therefore, make sure that you have maintained the correct tax rate for each product in Pickware before you create the valuation. Adjusting the tax rate afterwards can lead to a more accurate valuation.

If you increase your stock via free goods receipts, for example because you handle your supplier orders externally, you have to set a purchase price manually for the corresponding line items. To do this, open the relevant goods receipt under Warehousing → Goods receipts and double-click in the Unit price (net) column, enter the price there, and save your entry using the checkmark on the right.

You can find an overview of all stock valuations you have created in your Pickware Admin under Warehousing → Stock valuation. To create a new stock valuation, proceed as follows:

Please note that only one stock valuation can be created for a time range at a time. However, you can delete stock valuations you have already created via the overview if needed. If the time range of the stock valuation also includes the current day, only a preview can be created. The stock valuation can only be saved for completed days.

When you open the created report, you can view the valuation basis for each product in the Stock column via the truck icon. The valuation basis consists of all goods receipts and supplier orders in which the product was included at the respective price.

The valuation can be done using LIFO, FIFO, or the weighted average of the period. When you create a new stock valuation, the reporting method you used last time is preselected.

All valuation methods have in common that at the end of a report period, the existing stock including its valuation is carried over to the next report period and booked there as a goods receipt. Since all goods receipts require a purchase price, Pickware ERP uses the average valuations of the previous period for this.

In principle, the valuation is based on the stock currently in the warehouse and all goods receipts of a valuation period. The carry-over from the previous period (if any) also counts as a goods receipt. In the first valuation period, all goods receipts before the reporting day are taken into account accordingly.

The stock value (SV) is the total of quantity × purchase price of the goods receipts taken into account:

Here, nᵢ is the quantity and ekᵢ is the purchase price of goods receipt i. The total is summed over all N goods receipts taken into account (i = 1 to N).

For the portion of stock that cannot be assigned to a specific goods receipt, Pickware uses the current purchase price of the product as the valuation basis. If no purchase price is stored on the product, the average price from the carry-over of the previous period is used instead.

Depending on the valuation method, the valuation works as follows:

This method simplistically assumes that the newest goods, i.e. those received last (= last in), are taken out of the warehouse first (= first out). The older goods receipts therefore remain in the warehouse and are added up for the calculation of the stock valuation until the current stock is reached.

Here, again simplistically assumed, the oldest goods, i.e. those received first (= first in), are taken out of the warehouse first (= first out). The newer goods receipts therefore remain in the warehouse and are added up until the current stock is reached.

The current stock is multiplied by the weighted average price of the period. The price is calculated as follows:

The weighted average price ekØ is therefore the total of quantity × purchase price of all goods receipts of the period, divided by the total of their quantities. In the example below for 2022: (100 × €5 + 50 × €4 + 70 × €6) ÷ 220 = €5.09.

For clarification, here is a concrete example.

Depending on which method was chosen, the calculation works as follows:

A stock valuation that has already been saved via Save as report is a fixed carry-over ("carry-over") into the next valuation period and is not recalculated retroactively.

If the underlying purchase price was incorrect — for example because no purchase price was set on a stock booking and the product's current purchase price was therefore used as a fallback —, this value cannot be edited directly in reports that have already been saved.

To correct the valuation, you have two options:

If a supplier's purchase price is wrong, you correct it in the goods receipt, not on the product. To do this, open the relevant goods receipt under Warehousing → Goods receipts and adjust the Unit price (net) on the line item.

If the goods receipt is already part of a saved stock valuation, it is locked and can no longer be changed. In that case, clarify the correction outside of Pickware with your accounting department or rebuild the reports as described below.

A saved report is the carry-over for the next valuation. If an incorrect value is stored in it, all following reports continue to calculate with it. Here is how to rebuild the reports:

You proceed the same way if you have accidentally deleted a report from a previous year.

There are two typical reasons for this. An already saved report valued the product at €0, and the quantity has not changed since: In that case, the value 0 is carried over from the carry-over, even if the purchase price on the product is now correct. In this case, rebuild the reports.

Or it is a variant without its own purchase price for which inheritance from the main product is disabled. Such variants are valued at €0. In that case, enter a purchase price on the variant.

Yes. The physical stock including reserved quantities is valued, because the goods are part of your inventory assets until goods issue.