FAQ: Inventory Value Report

Why does my total inventory value seem too high (or too low)?

Check the costing method and date filters. If you use FIFO and old batches are in stock, their low cost makes value lower. If you use standard or average cost, newer batches might have higher cost, raising value. Also verify that all items have cost prices assigned. Items without costs show $0.

What's the difference between unit cost and total value?

Unit cost is the cost per single item (e.g., $1.50 per tablet). Total value is unit cost multiplied by quantity on hand. If you have 1000 tablets at $1.50 each, the total value is $1500.

Can I see the value of just one warehouse?

Yes. Use the Warehouse filter to select a single location. The report will show only items and their values for that warehouse.

Why did my inventory value change between yesterday and today?

Inventory value can change for several reasons:

• New receipts — if you received items with a different cost, value increases.
• Usage or sales — if you sold items, the quantity drops, so value drops.
• Cost adjustments — if you updated an item's cost, the value recalculates.
• FIFO batches — if using FIFO and a low-cost batch is fully used, the next item's cost (and value) may jump.

Should I use FIFO or Average Cost?

This depends on your business and accounting standards. FIFO reflects real-world stock rotation and is required in many industries. Average Cost is simpler and smooths value over time. Consult your accountant or local tax rules.

How do I track inventory value over time?

Run the report on different dates and export to Excel. Create a table comparing dates side by side, or chart the Grand Total over time to spot trends (e.g., is stock growing or shrinking?).

What if an item shows $0 value but I know it's in stock?

The item likely has no cost assigned. Go to Products and set a cost price for that item. Once saved, re-run the report to see the updated value.

Can the Inventory Value report be used for my balance sheet?

Yes, but with caution. The Grand Total represents your inventory asset. However, your accountant may need to adjust it for:

• Reserve for obsolescence — write down old or slow-moving stock.
• Lower of cost or market — if market value is lower than cost.
• Currency adjustments — if you trade in multiple currencies.

Always review with your accountant before publishing financial statements.

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