Stock tab of the item master deals with how the  stock is maintained and valuated.

Fields & its description:

• Stock Maintenance

If stock  maintenance is applicable for this item then indicate as such in this screen.

• Batch Stock

Some items may be subject to large volume transactions and this can be specified by selecting the Yes option.

•  Unique Number

If a batch stock is kept, then there is a possibility that some batches might require unique identification. Choose accordingly.

• Stock Valuation Type

Stock valuation of items can be based on multiple criteria. Some of the commonly used methods are:

FIFO – Refers to First-In First-Out where the stock is valuated based on the fact that inventory that is manufactured first is usually sold first.

LIFO – Last-In First-Out is the opposite of FIFO i.e. the most recently manufactured item is sold first.

Weighted Average – This is calculated by dividing the cost of goods available for sale by the number of units available. This method can be used when inventory is intermingled and commoditized.

Last Purchase Rate –  The cost is decided based on the last purchase rate of the item.

Market Rate – If valuation adheres to the current market rate then this option can be selected.

• Bin Tracking Required

The location of the item kept can be tracked using bin tracking. Bin may refer to  shelves, drawers, containers, etc.