In general, the valuation is based on the stock currently in the warehouse and all goods receipts within a valuation period. The carry-over from the previous period (if available) 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 calculated over all N goods receipts taken into account (i = 1 to N).

For the calculation, the purchase prices on the goods receipt line items of the valuation period are used; however, only line items with a purchase price set are taken into account. If you increase stock via free goods receipts, you have to add the purchase price to the line items manually so that they are included in the valuation. For goods receipts from supplier orders, a purchase price is usually already stored.

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?.

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

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

Here it is assumed, as a simplification, that the newest goods, i.e. those received last (= last in), are removed from the warehouse first (= first out). The older goods receipts therefore remain in the warehouse and are added up for the calculation of the valued stock until the current stock is reached.

Here, again as a simplification, it is assumed that the oldest goods, i.e. those received first (= first in), are removed from 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 in 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.
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Depending on which method was selected, the calculation works as follows:

A valued stock 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 not correct, you correct it in the goods receipt, not on the product. To do so, 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 valued stock, 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 saved in it, all following reports continue to calculate with it. Here is how to rebuild the reports:

You proceed in 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 has been disabled. Such variants are valued at €0. In that case, enter a purchase price on the variant.

Yes. The valuation covers the physical stock including reserved quantities, because the goods are part of your inventory assets until they leave the warehouse.