📍 Where can I find this module?
Main menu > Stock management
1. Introduction #
Inventory valuation makes it possible to know at any time the financial value of the goods held by the company. Kafinea calculates this value automatically with each stock movement, using the Weighted Average Unit Cost (WAUC) method.
Who is this guide for? #
- Logistics managers / warehouse staff: understand how stock movements impact valuation
- Accountants / management controllers: use price history for closings and analyses
- Finance directors: understand the valuation method and the rules applied
2. Understanding WAUC valuation #
Principle #
WAUC (Weighted Average Unit Cost) recalculates the average price of each product with each stock receipt:
Prix unitaire moyen = Valeur totale du stock / Quantité en stock
Example:
| Operation | Quantity | Unit price | Movement value | Stock after | Stock value | WAUC |
|---|---|---|---|---|---|---|
| Opening stock | — | — | — | 100 units | €500 | €5.00 |
| Receipt of 50 units at €6 | +50 | €6.00 | €300 | 150 units | €800 | €5.33 |
| Delivery of 30 units | −30 | €5.33 | −€160 | 120 units | €640 | €5.33 |
| Receipt of 80 units at €4.50 | +80 | €4.50 | €360 | 200 units | €1,000 | €5.00 |
Key takeaway: receipts change the average price; issues are valued at the current average price (WAUC does not change on an issue).
Physical stock and available stock #
Kafinea distinguishes two concepts:
- Physical stock: quantity actually present in the warehouses
- Available stock: physical stock minus reserved quantities (for example, reserved for an order being prepared)
Valuation is calculated on physical stock. Available stock is shown for information purposes.
3. Which documents impact valuation? #
Valuation is recalculated automatically when the following documents are validated:
3.1 Goods receipt note (stock receipt) #
When you receive goods from a supplier, the goods receipt note:
- Increases the quantity in stock
- Adds the value of the goods received to stock
- Recalculates the WAUC
3.2 Delivery note (stock issue) #
When you deliver goods to a customer, the delivery note:
- Decreases the quantity in stock
- Removes the corresponding value (at the current WAUC) from stock
- The WAUC remains unchanged
3.3 Stock transfer #
When you transfer goods between warehouses:
- The transfer is valued at the current WAUC
- The WAUC does not change (it is a simple move)
3.4 Supplier invoice (additional costs) #
Incidental costs (transport, customs, insurance, etc.) can be allocated to product lots via the allocation wizard. These costs:
- Increase the stock value without changing the quantity
- Recalculate the WAUC upwards
Example: You receive 100 units at €10 (stock value = €1,000, WAUC = €10). You allocate €200 in transport costs to this lot. New value = €1,200, new WAUC = €12.
4. Multi-currency management #
If your company works with multiple currencies, Kafinea automatically handles conversions:
| Currency | Description |
|---|---|
| Document currency | The currency of the invoice or the goods receipt note |
| Base currency | The reference currency of your Kafinea instance |
| Valuation currency | The currency in which valuation is expressed (default USD) |
Exchange rates are applied automatically on the date of each movement. Valuation is calculated in parallel in the base currency and in the valuation currency.
5. Lot tracking #
If your products are managed by lots, valuation is calculated separately for each lot. This means that two lots of the same product may have different WAUCs if purchase prices or allocated costs differ.
6. Viewing valuation history #
6.1 Accessing the history #
Stock price history is available via the Product stock price history module. This module automatically records, for each movement, a snapshot containing:
- The movement date
- The product and lot concerned
- The quantity in stock (physical and available)
- The stock value (physical and available)
- The WAUC unit price
6.2 Reading the history #
Each line in the history represents the valuation status after a given movement. By browsing the lines chronologically, you can track changes in the WAUC and stock value.
Note: This module is read-only. Records are created and deleted automatically by the system. You cannot edit them manually.
6.3 Using the history for accounting closings #
To obtain the stock value on a given date:
- Filter the history by date (last entry before or on the closing date)
- Filter by product or lot if needed
- The Physical stock value column provides the value to use
7. Allocating additional costs #
7.1 When should allocation be used? #
Use allocation when you receive a supplier invoice containing costs that must be included in the cost price of the goods: transport, customs, handling, insurance, etc.
7.2 Accessing the allocation wizard #
- Open the supplier invoice containing the costs to allocate
- Click the “Additional cost allocation” wizard
- Select the product lots to which to allocate the costs
- Confirm the allocation
Allocated costs are immediately included in the WAUC calculation for the lots concerned.
Important: Allocation is also possible from supplier credit notes, for example to correct a previous allocation.
8. Special case: products from production #
When a finished product enters stock from a location of type Production, its value is not based on a supplier purchase price. It is calculated from the total cost of the raw materials consumed to manufacture it.
Example: To manufacture 10 units of the finished product “Wooden table”, you consume:
- 20 planks at €5 = €100
- 40 screws at €0.10 = €4
- Total materials = €104
The WAUC on receipt for the finished product will be: €104 / 10 = €10.40 per unit.
9. Standard selling price #
In addition to stock valuation, Kafinea can automatically calculate the selling price of standard products from supplier offers. This mechanism is described in detail in the User Guide – Standard Products.
10. Typical workflow #
Purchase cycle #
- Supplier order → you place an order
- Goods receipt note → goods arrive → stock and valuation are updated
- Supplier invoice → if additional costs exist, you allocate them via the wizard → the WAUC is adjusted
Sales cycle #
- Customer order → your customer places an order
- Delivery note → goods leave → stock decreases, valued at the current WAUC
Internal transfer #
- Transfer request → you move stock between warehouses → the WAUC does not change
Accounting closing #
- Consult the stock price history to obtain the stock value on the desired date
11. Frequently asked questions #
My product’s WAUC seems incorrect #
The WAUC is recalculated for each movement in chronological order. Check:
- That all goods receipt notes have been validated
- That the prices on the goods receipt notes are correct
- That any additional costs have been correctly allocated
Can I manually change the valuation? #
No. Price history is managed automatically by the system and cannot be changed manually. If an error is found, correct the source document (goods receipt note, invoice, etc.) and the valuation will be recalculated.
How are currencies managed? #
Valuation is calculated in parallel in two currencies: the base currency of your instance and the valuation currency (default USD). Exchange rates are applied automatically on the date of each movement.
Do transfers between warehouses change the WAUC? #
No. A transfer is a simple physical move. The value and the WAUC remain unchanged.
How do I include transport costs in the cost price? #
Use the additional cost allocation wizard from the supplier invoice containing the transport costs. Allocate them to the relevant product lots. The WAUC will be adjusted automatically.
What is the difference between physical stock and available stock? #
Physical stock is the quantity actually in the warehouse. Available stock is physical stock minus reserved quantities (for example, for orders being prepared). Valuation is based on physical stock.
Do stock adjustments impact valuation? #
Movements to/from stock adjustment locations are not taken into account in the WAUC valuation calculation.