What is lowest value principle in SAP SBO - SAP Business One?

SAP Term: lowest value principle

• Component: SBO

• Component Name: SAP Business One

• Description: A method of balance sheet valuation for warehouse items according to which current inventory is valuated at the lower of cost or net realizable value. &Example& An item can only be sold for 40% of its original value. Inventory valuation is carried out, which decreases the item's value to its current value.

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• Key Concepts: 
  The Lowest Value Principle is a feature of SAP Business One (SBO) that allows users to select the lowest value from a list of values when entering data into the system. This feature helps to ensure accuracy and consistency in data entry, as it eliminates the need for manual calculations or comparisons.
  
  How to use it: 
  To use the Lowest Value Principle, users must first select the field they wish to enter data into. Then, they must select the “Lowest Value” option from the drop-down menu. This will automatically select the lowest value from the list of values available. 
  
  Tips & Tricks: 
  When using the Lowest Value Principle, it is important to remember that it only works with numerical values. If you are entering text or other non-numerical values, you will need to manually select the lowest value from the list. 
  
  Related Information: 
  The Lowest Value Principle is just one of many features available in SAP Business One (SBO). Other features include advanced reporting capabilities, automated workflow processes, and integrated analytics. For more information on these features and how to use them, please refer to the SAP Business One User Guide.