Hi Steven, The costing method is Average. The unit cost on the item card is R398.72 which is correct. Yes the entry type revaluation has the cost amount actual as the revalued difference. Yes the cost per unit in the revaluation is the unit difference and yes the item ledger entry shows the cost amount (actual) as the new item cost. That’s why I don’t understand why the Inventory Valuation report is incorrect. The report I am using should be a standard report 1001 called Inventory Valuation? Thanks for your input!