What is valuation method in SAP SBO - SAP Business One?

SAP Term: valuation method

• Component: SBO

• Component Name: SAP Business One

• Description: The determination of how inventory value is to be calculated, for example, moving average price, FIFO "first in, first out", or LIFO "last in, first out".

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• Key Concepts: 
  Valuation Method is a feature in SAP Business One (SBO) that allows users to determine the value of their inventory. It is used to calculate the cost of goods sold (COGS) and the cost of goods available for sale (COGAS). The valuation method can be set to either FIFO (First In, First Out) or LIFO (Last In, First Out). 
  
  How to use it: 
  To use the Valuation Method feature in SBO, users must first set up their inventory items. This includes entering the item’s description, unit of measure, and cost. Once this is done, users can select the Valuation Method they wish to use for each item. This can be done by going to the Inventory tab in SBO and selecting “Valuation Method” from the drop-down menu. 
  
  Tips & Tricks: 
  When setting up your inventory items in SBO, it is important to remember that the Valuation Method you select will affect how your COGS and COGAS are calculated. For example, if you select FIFO as your Valuation Method, then your COGS will be calculated based on the cost of the oldest items in your inventory. 
  
  Related Information: 
  For more information on setting up and using the Valuation Method feature in SBO, please refer to SAP’s official documentation here: https://help.sap.com/viewer/product/SAP_BUSINESSONE/9.3/en-US/f8f2d7a7c9e14b6f8a5d3c2b1e4d7f2a.html