Inventory Re-value

Things just aren't worth what they once were. Sometimes product can wilt (and lose value) on your shelves. For some distributors it's actually food that loses its value, and for others, it's hard drives and RAM.

How many times have you had to take a loss on outdated inventory? When a product's life cycle is measured in months but the shipping volumes are extremely high, it is common to be left with outdated inventory. Managing this kind of situation is what Trax Distribution:Solutions Inventory Re-Value is all about.

Is it a supplier credit?
Inventory Re-Value allows you to select product with on-hand quantities received within a specified period and apply a new cost. Inventory Re-Value recognizes multiple costs within the date range and can apply discounts based on "last cost" calculations or on each specific layer. Cost adjustments can be calculated as an absolute value, (where a specific new cost is applied), or as a dollar or percentage discount. The total net amount of the re-value can then be optionally applied as an A/P credit.

Is it a write-down?
Sometimes you just have to swallow the cost of outdated inventory. With Inventory Re-Value, cost adjustments can be applied to a re-value operating account in the General Ledger that can be analyzed at any time to help future planning and forecasting. New costs are applied to inventory on-hand at the detail level. This means that actual serial numbers are associated with the newly reduced costs and any sales margin or cost of sale calculation will be based on the new cost. Pricing and commission calculations can also be based on the new costs.

Inventory Re-Value offers a variety of reports to help analyze the cost and administration of aging assets. Knowing quantity purchased, quantity re-valued, and term to cost change is often as important as the dollar value of the write-down. Inventory Re-Value is a critical piece for any distributor dealing with industries in a highly volatile market.