A valuator looks at a Company's financial stability, earnings growth, or the effectiveness of the management. An accurate Stock evaluation improve internal solidity and your external reputation.
We know that to attribute a value to the inventory needs many aspects to be considered: e.g.:
- What to evaluate
- Which logic to be applied (STD, Average, FIFO, LIFO, etc.)
- Adoption of any comparison technique (with Market Price, Sales Price, etc.)
- What to devalue
- and Why to devalue.
An accurate stock valuation drives you to keep under control the Net Working Capital of your company, furthermore, allows you to have a correct benchmark for other analysis aimed to highlights Production Efficiency.
Evaluation and Devaluation results are not only available to evaluate the Stock inventory value, but also be used to adjust the margin results in sales when devaluated batches are sold.
SAP Standard tool for Slow Moving devaluation material is based on the obsolescence at material code level.
In your business a devaluation logic at material code level cannot be sufficient because existing peculiarities between batches of the same material code can influence the saleability of the good.
You needs to assign an age to each batch present in your stock in spite of they refer to the same material code.
We developed a tool* able to work at batch level and assign to it a devaluation indicator with its own assigned devaluation percentage.
It allows you to have a more specific and punctual inventory value.
SAP-proposed solutions with our in-house ones offer you a complete picture of the opportunities.