Unit Cost


Revalued stock so that it has a zero value, run adjust costs but the Unit Cost still shows as a postiive value rather than zero. Costing method FIFO. Can someone explain why the Unit Cost hasn’t change to zero.



How do you revalued stock ? Have u applied entry in journal which you want revalued??

The unit cost on the item card is the weighted average cost of all entries for the item. Just revaluating the inventory to zero doesn’t necessarily move the unit cost to zero because there are prior entries for the inventory on hand. Instead, you will need to remove all the inventory and then put it back in at the unit cost you want to show on the card.

Dear Andrew,

Same problem we faced 3 month before and the reason behind is that at the time of Positive and Negative Adjustment at the time of Item Journal in client side have not put any Price in that and also you need to create invoices of orders(whether Sales or Purchase ) then it will update the value of Unit Cost and if you’ll not create Invoice then value of Unit Cost will be zero.

Thanks & Regards,

Rishi Mohan