Raw material valuation

Raw material valuation

What do different Valuation Based On choices in the Bill Of Materials (BOM) consist of?

Answer: The Value Based On field offers the following three choices:

The purchase or production value of an item determines its valuation rate.

The definition of a purchase item is based on the costs stated on the purchase receipt. There won't be a valuation rate for an item if you don't have a stock reconciliation or a purchase receipt for it.

Price List Rate: With this selection, you can get item prices from the price list.

Last Purchase Rate: This is the item's final Purchase (Order) Rate.