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Inventory object values

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This article provides information about how the values of an inventory object are calculated.

A new functionality that is named physical quantity lets you see the values of a specific inventory object.

A cost object represents the entity level where inventory accounting is performed. For more information about cost objects, see Cost objects.

To see the values of a specific inventory object, click Physical quantity on the Cost object page. Here is how the value of an inventory object is calculated:

Inventory object.Value = Cost object.Average unit cost × Inventory object.Quantity

The following example shows how the values of an inventory object and a cost object are calculated. Two product receipt events are registered on item A:

  • Product receipt 1: Quantity = 100 pcs., Amount = $1,000.00, Site = 1, Warehouse =11, Batch No. = B1
  • Product receipt 2: Quantity = 50 pcs., Amount = $800.00, Site = 1, Warehouse =11, Batch No. = B2

The following table shows the calculation result for a cost object. You can view the result on the Cost object page.

Object type Item number Site Quantity Inventory unit Value Average unit cost
Cost object A 1 150 Pcs.

$1800.00

$12.00

The following table shows the calculation result for an inventory object. You can view the result by clicking Physical quantity on the Cost object page.

Object type Item number Site Warehouse Batch No. Quantity Inventory unit Value Average unit cost
Inventory object A 1 11 B1 100 Pcs.

$1200.00

$12.00
Inventory object A 1 11 B2 50 Pcs.

$600.00

$12.00
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